Within the next five years, Americans will be spending more than a third of their daily TV-viewing time watching on-demand programs rather than regularly scheduled shows and events, according to a new forecast by Pike Fischer.

In a report on video-on-demand (VOD) usage, the market research firm says that the majority of households in the US will watch some form of on-demand content provided through cable, satellite TV or telephone company fibre-optic lines. And while the average monthly TV viewing time per household will remain relatively stable, the amount of that time viewing VOD will rise from 8.5 per cent at the end of 2007 to about 38 per cent by 2012, the report concludes. That translates into nearly two hours of VOD viewing per day.

According to Scott Sleek of Pike Fischer: “Cable companies in particular are identifying advertising as a key area of growth potential, since the addition of high-speed Internet and digital phone customers will eventually level off. Video on demand will enable more targeted advertising, based on user profiles and viewing habits‹the same way sites like Amazon.com operate today. That will make television an appealing marketing platform for advertisers.”

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Categories: Research, Research Library, VOD