Video-on-demand services are gaining significant traction in markets such as North America and Europe, where large pay-TV operators have formed content portfolios consisting of thousands of movies and TV shows. IMS Research
estimates that in 2010, the North American VOD market generated $1.98 billion in revenues, and the European VOD market totaled $1.11 billion. The two regions combined comprise 46.1 million pay-TV subscriber homes that are using VOD services.
In a recently published study, “On-demand Services Business Models: Video, Games & Over-the-Top – 2011 edition,” IMS Research examines regional development in the VOD market and forecast VOD uptake and revenues for 30 countries. The study forecasts that in 2016, North America will continue to lead the market with 33.1% share of world VOD revenues, followed by Western Europe with 30.5% share, and Asia Pacific with 25.7% share. The five largest country markets, in terms of VOD revenues in 2016, consist of the US, Japan, Canada, the UK, and South Korea, with the US accounting for over a quarter of the market.