Global growth for on-demand services

Global revenues from on demand video services are set to rise by as much as 24 per cent by the end of this year, despite the decline in TV subscriptions. This is according to new research from Informa Telecoms & Media this week.

On-demand services have enjoyed a phenomenal success in the UK this year, the BBC iPlayer received 139 million requests for TV and radio programmes last month. Not only this but viewers have been accessing the content across a wide range of platforms, including Virgin Media, Wii, PS3, computing and mobile platforms, confirming that viewers want to consume their content in more than just the traditional formats.

The majority of on-demand services still come from cable TV subscriptions (around 51%), which is expected to rise as more viewers make the switchover to digital services. However, there are likely to be changes in the platforms viewers can access on-demand content. At the recent Morgan Stanley TMT conference, ITV’s chief executive Adam Crozie, commented on its plans to create a new micropayments system, so it can sell its content across a wider range of platforms and reduce its dependence on advertising revenues.

But, to be successful in any of its target platforms, ITV will need to invest in creating popular new content. Something they are clearly keen to address, with the recent appointment of Denise O’Donoghue to lead commercial strategy at production arm ITV Studios.