VOD to Drive U.S. Subscriber Revenues Through 2009, Study Says

LAS VEGAS — Video-on-demand is forecasted to drive U.S. cable and satellite revenues through 2009, according to research group Parks Associates.

In gearing up for January’s Consumer Electronic Show in Las Vegas that coincides with the Adult Entertainment Expo and Internext, Parks Associates released a study, which said that over the next few years, VOD will become the service differentiator for U.S. carriers, and by 2009 the average video revenue per subscriber will be $163 per month, up from $87 per month in 2005.

“At 2006 International CES, people should definitely look for solutions that enable new and unique on-demand content services,” Parks Associates analyst Harry Wang said.

Parks researchers also said that more service providers will unveil IPTV services in 2006, putting competitive pressure on conventional cable and satellite companies. “IPTV providers will further intensify competition in the TV market by introducing more flexible service models that combine choice and convenience,” the study said.

In the U.S., several companies, including Radium Ventures’ Interactive Television Networks and Akimbo, already have launched IPTV systems using proprietary set-top boxes.

Laguna Niguel, Calif.-based Interactive Television Networks, or ITVN, sells a $100 set-top box and charges $30 a month for a package of channels, including XTV.

San Mateo-Calif.-based Akimbo offers its set-top box for $199 and charges a $10 monthly subscription.

In the U.K., telecom giant BT is ready to launch an IPTV system that is due out in the spring.

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