Video Downloads, PPV, VOD Won't Top DVD Sales Any Time Soon

Though most people think video downloading will wipe out the DVD business, Kagan Research forecasts that U.S. consumer spend on VOD by 2016 will still be smaller by a wide margin. The company forecasts that U.S. consumer spending on video on demand and pay per view will be one-quarter the consumer spend on U.S. home video in a decade.

U.S. on-demand programming is forecast to grow at a 12 percent compound annual growth rate over the next decade, reaching $8.7 bil. by 2016. The CAGR for U.S. home video software will be under 3 percent over the same period, yet on a total dollar basis it still remains much larger, Kagan researchers argue.