October 19, 2010

Screen Digest believes that standalone video-streamed games-on-demand ("VSGoD") services face significant challenges in driving user and revenue growth. Without operational data from more service providers we have remained conservative but realistic with our forecasts: currently we believe the sector will generate $411m revenues in 2014. Despite our view of the market there are substantial benefits for both gamers and publishers from VSGoD technologies: how operators build businesses around such services will be key. Screen Digest believes the sector will go through a period of experimentation, where VSGoD providers and games makers work out the best way to utilise the technology and optimise business models. A window of opportunity exists for the sector during the home console transition period when games hardware acquisition costs will spike sharply in 2013-2014 timeframe, but we recognise that building out consumer facing VSGoD services and marketing these services will incur significant costs.

Tables and charts included:

• North America: Video-Streamed On-Demand Revenue Forecast $m
• Western Europe: Video-Streamed On-Demand Revenue Forecast $m
• Western World (North America and Western Europe): Video-Streamed On-Demand Revenue Forecast $m
• On-demand operator summary

Pages: 9

Tables & charts: 4

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