[SatNews] The personal entertainment experience has embarked on a significant shift...

This is because on-demand delivery of video is widely available worldwide as well as to an increasing number of connected devices. IMS Research forecasts that in 2016, over-the-top (OTT) video services will generate $16.4 billion in 2016 and video-on-demand (VOD) services from pay-TV operators will generate another $14.7 billion, for a combined $31.1 billion in on-demand revenues.

A growing penetration of fixed connected devices in consumers’ homes and increasingly acceptable bandwidth speeds are two vital factors enabling the delivery of on-demand services. The pay-TV set-top box will continue to deliver the majority of on-demand entertainment into homes, although fixed in-home devices such as connected TV sets and game consoles will increase their impact on on-demand viewing. In the newly published study “Over-the-Top Video – Service Delivery & Business Models – 2011 edition,” IMS Research forecasts that 5.9 billion pay-OTT transactions (pay-per-view and subscription) will be initiated via fixed in-home devices in 2016, up from an estimated 563 million pay-OTT transactions in 2011. This compares to a forecast of 12.9 billion pay-VOD and OTT transactions initiated via the pay-TV set-top box in 2016, up from an estimated 5.2 billion in 2011, as forecast in the study “On-demand Services Business Models: Video, Games & Over-the-Top – 2011 edition.”