BERLIN — Video on demand will create greater crossborder opportunities for European films and generate a dramatic increase in coin in the next decade, a European Commission report forecast.
The report, which is part of European Union efforts to promote a competitive and diverse single market for its film industries, notes that Europe’s film sector, valued at $135 billion, produces 1,100 features a year but only a fraction are seen outside their countries of origin.
A vibrant VOD sector could change that.
VOD is on the rise across Europe, with close to 700 on-demand and catch-up services in operation. VOD revenue is expected to reach some $3 billion by 2013.
In 2008, the EU’s VOD market generated revenue of more than $900 million after increasing by 250% over the previous two years.
Compared with other distribution avenues — theatrical, DVD and pay and free TV — the VOD market share, while varying from country to country, remains marginal. Yet that share is growing.