VOD to overtake Blu-ray by 2017, reveals report

A new study suggests it may take a further eight years for Video on Demand services to become the dominant media provider.

Research firm SNL Kagan has predicted that physical media – ie, Blu-ray and DVD – will continue to be the leading providers of home entertainment.

According to the study, DVD is still overwhelmingly the main market leader, with a 97.1 per cent share.

This is set to continue for the next five years, with Blu-ray finally becoming market leader – by an estimated 59.7 per cent – in 2014.

Blu-ray is driving force

Blu-ray's dominance will be short-lived according to SNL Kagan. It expects Video on Demand to be the biggest provider of home entertainment by 2017.

The company points to a number of factors, including the rise of high-speed internet in the home.

Wade Holden, analyst at SNL Kagan, said about the findings: "Blu-ray will be the driving force behind the video retail market throughout the next decade.

"The current economic climate, however, will slow the growth of this new format and likely keep it from reaching the heights that it may have in better times.

"VOD services will continue to improve in both technology and content over the next decade and begin to draw consumers away from Blu-ray and DVD by 2017."