European operators see VOD as a "competitive differentiator"

July 25, 2008 - European operators see video on demand (VOD) as a key differentiator in acquiring new subscribers, according to ABI Research, which goes on to say that there is evidence suggesting that the move from near-VOD to true-VOD "dramatically increases" buy rates.

“The number of concurrent VOD streams will increase markedly over the next five years,” said Paul Lee, analyst for ABI Research. “The Asia-Pacific region is poised to experience high levels of growth: from 1.66mn VOD streams in 2007 to almost 21mn in 2013. And in total, the global trend toward increased usage of VOD streams will multiply tenfold throughout the years 2007 to 2013, with a compound annual growth rate of nearly 45%.”

Mr. Lee goes on to say that Western Europe will see the strongest surge in VOD users with the largest subscriber base and a slightly higher average revenue per user (ARPU) than North America, making it the eventual leader in the market. The research firm also believes that the arrival of IPTV operators offering true-VOD has raised the bar for video on demand services.