On-demand services to generate over $1 billion by 2012

According to a new report by Screen Digest, the on-demand media services will generate $1.1 billion consumer spending by 2012.

Screen Digest says that of this figure, two thirds will be new revenue while the rest will replace traditional DVD spending. The fact that two thirds of the revenue will be new money shows that on-demand services can and will offer something different than merely pushing out more TV.

New technologies will enable better ways in which to search, locate and consume content and will invariably mean additional content becoming available to the consumer following the long tail rule.

Let’s hope that the additional content does not mean more variations on the reality TV shows that dominate the UK TV schedule.