1. Telephone: 310.524.4007 Email: info@isuppli.com
By Mark Kirstein, Vice President Home Entertainment Multimedia Content & Services – Q3 2006 Topical Report
Video on Demand: New Digital and Broadband Video Distribution
Copyright © 2000-2006 iSuppli Corporation | All Worldwide Rights Reserved | Confidential | Patents Pending
August 2006
Strong Current VoD Market Growth Turns Explosive by 2008
The Video on Demand (VoD) market is already seeing rapid growth, achieving over 40% growth in 2005
versus 2004. 2006 is shaping up for another banner year. However, the real explosive growth will begin in
2008, as a variety of coincident trends mature to drive VoD on multiple fronts. Among these trends:
– Strong global IPTV deployment, with telecom operators well beyond initial technical hurdles and
aggressively leveraging non-linear, interactive features to lure subscribers. Cable operators similarly
competitive.
– Growing availability of VoD movie content with more favorable release windows
– New High Definition DVD recorders that will facilitate ‘download and burn’ purchases of movie
content.
– Readily available consumer electronics equipment with IP connections, enabling broadband/Internet
content to move to the TV via media home networks.
– A growing market for mobile video and mobile TV, of which a substantial amount is downloaded via
broadband and side-loaded to mobile phones.
Critical Questions Answered
What are VoD market trends across cable,
satellite, IPTV and Broadband?
How will each video distribution channel
leverage VoD for competitive advantage?
How will the VoD market shake out
among cable, satellite, IPTV and
Broadband? By Geography?
What are the VoD opportunities for
content owners? Network operators?
Equipment providers? Software &
technology companies?
What are the VoD Market, technology and
geographic trends?
Who Should Read This Report?
Professionals in strategy, marketing,
business development, research, product
and executive management
Managers in the media, content, service
provider, broadband, equipment, software
and technology industries
Professionals involved with cable,
satellite, IPTV and broadband video
distribution
Professionals in investment, financial and
other fascilitating industries
Worldwide VoD Revenue ($M)
0
5000
10000
15000
2004 2005 2006 2007 2008 2009 2010
By Operator Type- 2010
IPTV
Broadband
Cable

2. Telephone: 310.524.4007 Email: info@isuppli.com
Home Entertainment Multimedia Content & Services – Q3 2006 Topical Report
Video on Demand: New Digital and Broadband Video Distribution
Copyright © 2000-2006 iSuppli Corporation | All Worldwide Rights Reserved | Confidential | Patents Pending
Forecast
Frequency, Time Period
– 5-year Annual Forecast
Measures
– Revenue
– Subscribers
– Average Spend
Regions and Markets Covered
– Americas
– Asia
– Europe
Detail Level
– By video distribution channel, VoD & PPV;
subscribers for digital cable, DTH, IPTV
and Broadband
Applications and Products Covered
Video Content
VoD Aggregators
VoD Services
Network Operators
Broadband Video Portals
Hardware Infrastructure
Software Infrastructure
Mark Kirstein, Vice President
Mark Kirstein is responsible for the research following
digital audio and video delivered over wireless and
wired broadband networks.
Previously, Mark was Vice President and General
Manager of In-Stat, a market research firm following
advanced communications and semiconductors. In
this role, he managed business strategy, sales,
operations, and business development in Asia. In
addition, Mark managed the analyst team in the
research, analysis and creation of several hundred
research reports, annually. In prior roles, Mark
was Director and Principal Analyst for Multimedia
research.
Mark holds a Masters in Business Administration from
Arizona State University and a Bachelor of Science in
Electrical Engineering from California Polytechnic
University.
Table of Contents
Executive Summary
Cable VoD
DTH PPV and VoD
IPTV VoD
Broadband VoD
VoD Advertising
VoD on a Geographic Basis
The VoD Market
Overview
Macro Trends
Opportunities
Growth Inhibitors and Threats
VoD Trends
Market Structure
Industry and Competitor Segmentation
Cable TV Operators
Direct-to-Home (DTH) Satellite Service Providers
IPTV Service Providers
Third Party, Internet VoD Service Providers
Evolution of Broadband VoD
Issues and Challenges for Broadband VoD
Internet Download Sites
Other Download Models
Big Three Search Engines and Portals
Additional Online Video Initiatives
VoD Media/Content
Content Aggregators
VoD Content Providers
Adult VoD
High Definition VoD
Segmentation and Identification of Key Software and
Infrastructure
Providers
VoD Server Systems
Pitching/Catching and Asset Management
Metadata
User Interfaces and Software
VoD Advertising
Industry Perspectives
Advertiser and Programmer Perspectives
Two Approaches to VoD Advertising
Audience Measurement
Operator Trials, Deployments and Platforms
Overall Pay Per View and Video on Demand Market
Pay Per View Market
Video-on-Demand Market
Cable VoD Market
IPTV VoD Market
Broadband/Internet VoD Market
Regional Markets
Americas
Asia
Europe
Methodology

3. Telephone: 310.524.4007 Email: info@isuppli.com
Copyright © 2000-2006 iSuppli Corporation | All Worldwide Rights Reserved | Confidential | Patents Pending
Home Entertainment Multimedia Content & Services – Q2 2006 Topical Report
Video on Demand: New Digital and Broadband Video Distribution
Table 24: IPTV VoD Average Users per Month by
Geographic Region.
Table 25: Worldwide Broadband VoD Revenue by
Geographic Region
Table 26: Broadband VoD Average Users per Month
by Geographic Region .
Table 27: Americas Overall PPV and VoD Revenue by
Video Operator Type .
Table 28: Americas VoD Revenue by Video Operator
Type
Table 29: Asia Overall PPV and VoD Revenue by Video
Operator Type
Table 30: Asia VoD Revenue by Video Operator Type
Table 31: Europe Overall PPV and VoD Revenue by
Video Operator Type.
Table 32: Europe VoD Revenue by Video Operator
Type
Table of Contents (Continued)
Figures
Figure 1: Example IPTV Video Programming Tier.
Figure 2: Three Phases of VoD Deployment
Figure 3: Video-on-Demand Value Chain
Figure 4: Alignment of Factors and Trends Driving
Growth in VoD Acceleration in 2008
Tables
Table 1: Worldwide VoD Market Summary - Revenue
and Average Users By Operator Type and Region
Table 2: Progression of Video Industry with Increasing
‘Channel’ Selection
Table 3: Digital Cable Subscribers by Geographic
Region
Table 4: Digital Cable Revenue by Geographic Region
Table 5: Direct-to-Home Satellite Subscribers by
Geographic Region
Table 6: IPTV Subscribers by Geographic Region.
Table 7: IPTV Video Revenue by Geographic Region
Table 8: Broadband Subcribers by Geographic Region
Table 9: Worldwide PPV and VoD Revenue by Video
Operator Type
Table 10: Worldwide PPV and VoD Revenue by
Geographic Region
Table 11: Worldwide On-Demand and Video Revenue
by PPV and VoD Category
Table 12: Worldwide PPV Revenue by Video Operator
Type
Table 13: PPV Average Users per Month by Video
Operator Type
Table 14: Worldwide PPV Revenue by Geographic
Region
Table 15: PPV Average Users per Month by Geographic
Region
Table 16: Worldwide VoD Revenue by Video Operator
Type
Table 17: VoD Average Users per Month by Video
Operator Type
Table 18: Worldwide VoD Revenue by Geographic
Region.
Table 19: Worldwide VoD Average Users per Month by
Geographic Region
Table 20: VoD Average Spend per Active User by
Geographic Region
Table 21: Worldwide Cable VoD Revenue by
Geographic Region
Table 22: Cable VoD Average Users per Month by
Geographic Region
Table 23: Worldwide IPTV VoD Revenue by Geographic
Region

4. Telephone: 310.524.4007 Email: info@isuppli.com
Home Entertainment Multimedia Content & Services – Q3 2006 Topical Report
Video on Demand: New Digital and Broadband Video Distribution
Copyright © 2000-2006 iSuppli Corporation | All Worldwide Rights Reserved | Confidential | Patents Pending
2Wire Charter Cable Hollywood Films National Football League Showtime
A&E Television Networks Charter Communications Inc. Icel Telecom National Geographic Siemens
ABC China Central Television iFilm National Hockey League SingTel
Adelphia China Netcom IGN Entertainment NBC Universal SkyPerfect
Advance/Newhouse China Network Systems IMAKE NDS Softbank
Airgo China Telecom in2movies Neilson Entertainment Sonic Solutions
Akamai Choicestream In2TV Netflix Sony BMG Music
Akimbo CinemaNow InDem Neuf Cegetel Sony Electronics
Alcatel Cisco Systems Innertube New Frontier Sony Pictures Entertainment
Altrio Clear Lake Insight Communications Co. News Corp South Slope Coop. Comm.
Amazon Clearwire Instant Media Nickelodeon Starz Entertainment Group
American Express Co. Club Internet Intel Noggin StupidVideos
Amp’d Mobile Columbia Tri-Star ITVN Nokia Sundance Channel
AOL Comcast Internode Nortel SureWest Communications
Apple Computer Comhem Itiva NTL TBC
Aptiv Digital Concurrent Jitterbug OCN Shanghai Cable TFN
Arcor Consolidated Comm. J:COM OLN TINP
Arkwest Communications Cox Kasenna OnDem TBS
Arris CT Communications Kinomania.cz One4movie Telefonica
Arroyo Dakota Central Telecomm. Kontiki Ono Telenet
APBT Deutsche Telekom Korea Telecom Orange Telewest
Astound Broadband Digeo KT in Korea (wireless) Paramount Pictures Texas Instruments
AT&T Digg Level 3 Communications Paul Bunyan Telephone The Anime Network
Atlantic Broadband DirecTV LG Electronics PCCW The New York Times
Atlas Discovery Networks LionsGate Entertainment Penthouse Media Group Inc Time Warner
BBC Disney Mobile Lyse Tele Perenety TiVo
Bci Disney's Buena Vista M2B World Pioneer Telephone Coop. TNT
Belgacom E! Entertainment Television Major League Baseball Playboy T-Online
BellSouth Eastern Multimedia Matsushita Electric Powercomm (Xpeed) Toshiba
Berg EchoStar Maven Networks PutFile TotlVid
BET ETRI Mediacom Comm. Corp. QBit Touchstone Pictures
BSNL Entone MediaCorp Quiksilver Entertainment TransACT Comm.
Bharti Airtel ESPN MediaZone Rainbow Media Services Turner Entertainment
BitTorrent Euclid Discoveries MetaCafe RCN Tuyo Mobile
Bixby Telephone Co. Everstream MGM Reliance Communications TV Guide
Blockbuster EZTakes Microsoft Rentrak TVN Entertainment
Blue Ridge FastWeb Mid Hudson Cable Revver UnCut Video
Boomerang Flextech Television Miramax Films RipeTV Universal Studios
Bratz Mobile Ford Motor Co Mobile ESPN Royal Philips Electronics UPC
Bresnan Fox Entertainment Monaco Telecom Samsung Electronics UWB Forum
Brightcove France Telecom Motorola SaskTel Veoh Networks
Brittish Telecom Free/Illiad Group Movie Channel Scientific Atlanta Verizon
Broadbus Fu Yang Media Technology MovieBeam Screen Gems Video Ezy
BSkyB Global Media Ventures Movielink Scripps Networks Video Networks Ltd.
Buckeye Google MSNTV SeaChange ViewNow
CableLabs Grouper MTV Networks Seznam.cz Walmart
Cablevision Guba MultiChannelStats Shanghai Media Group Walt Disney Co
Cavalier Telephone Hanaro Telecom (HanaTV) Myrio/Siemens Shanghai Telecom (BestTV) Warner Bros
CBS Television Harmonic MySpace Sharp WiMedia Group
CCOR Harris Broadcast Comm. Naspers Shaw Yahoo
CenturyTel HBO NBA Shekou CATV youTube
Český Telecom Hitachi NCTC
Companies Noted in the Research