On-Demand Market to Hit $1.1 Bil. by '12, Study Says

LONDON On-demand media — taking in video and television services — could help replace falling DVD sales revenues and bolster incremental cash streams, according to the latest report published here Wednesday.

The research, published by U.K.-based specialist Screen Digest, predicts the on-demand sector will generate $33 million in incremental spending this year in the U.S. and the major European markets, and be worth $1.1 billion in consumer spending by 2012.

Crucially, two-thirds or $665 million of this amount will be new revenue, while the remainder will replace traditional DVD spending, the report says.

With the video business approaching the saturation point in many markets and online retailers struggling to accommodate an ever-expanding DVD catalog, on-demand media will provide a growing outlet.

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