SOURCE: Pike & Fischer

September 25, 2007 08:35 ET

Americans' Video-on-Demand Viewing to Average Nearly Two Hours per Day by 2012, Report Concludes

SILVER SPRING, MD--(Marketwire - September 25, 2007) - 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 new report on Video-on-Demand (VOD) usage, the Silver Spring, MD-based market research firm says that the majority of households in the U.S. will watch some form of on-demand content provided through cable, satellite TV or telephone company fiber-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% at the end of 2007 to about 38% by 2012, the report concludes. That translates into nearly two hours of VOD viewing per day.

According to Scott Sleek, author of the report, this trend will bring many new revenue opportunities for multi-channel video providers, particularly in the form of advertising sales.

"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," says Sleek, director of Pike & Fischer's Broadband Advisory Services. "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."

Pike & Fischer, a BNA company, offers a host of legal and business products covering the telecommunications industry. This new report, Video-on-Demand Usage: Projections & Implications, is priced at $499 and can be purchased at www.broadbandadvisoryservices.com. For analyst commentary or to request a briefing, contact Scott Sleek at 301-562-1530, ext. 291 / ssleek@pf.com.

For information about Pike & Fischer's Broadband Advisory Services, visit www.broadbandadvisoryservices.com or contact Jonathan Wentworth Ping at 212-576-8741 / jping@pf.com.

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