12/12/2006

Still in its infancy, the Video on Demand market (see Special Report On the verge of the VoD revolution) – with an estimated turnover of €6.9m in 2006 in France – is expected to reach dizzying heights over the next five years, according to a study published by NPA Conseil (Nouveaux Paysages Audiovisuels).

Forecasts predict turnover of VoD rentals to reach €338.7m in 2011, with cable and broadband TV (€334.4m) set to be more popular than online downloading (€4.35m). These forecasts mirror statements made by Marie-Christine Levet (CEO of Club Internet and T-Online France) at the Dijon Film Meetings, organised by ARP at the end of October.

"In 2006, VoD took off in France and Germany with its arrival on television. This is a major change because online VoD, which was launched in 2002, was limited to adult audiences or very young teenagers interested in action films and blockbusters. Today, 25% of our TV users have used VoD and we estimate the market in France will be €165m in 2010," said the director of the French subsidiary of T-Online International AG - Deutsche Telekom.

Among the major growth factors justifying the even more optimistic forecasts from NPA Conseil is the rise in triple play offers (telephone, TV, Internet) with VoD also offered by Internet service providers through cable, as well as an increase in season tickets (rental of several films), which could represent half of the programmes seen from 2008.

(Translated from French)