Last year, more than 500 million pieces of broadband video content was watched by Virgin Media cable tv customers, with a whopping 20% of the programmes coming from the BBC’s iPlayer.

Virgin Media has around 3.5 million subscribers, just over half of who access its on-demand tv service – which topped 516 million views of content in 2008. Virgin Media also saw 56 million views of video content in December alone, with a vast 17 million of this thanks to BBC iPlayer shows.

It is clear that the BBC iPlayer has taken off (I caught ‘The Baftas’ on it just the other day), with online UK web users reaching a vast 276 million views of content in 2008, with an impressive 41 million in December alone – and ever growing…..

Chief Executive, Virgin Media, Neil Berkett, said of the move ‘The launch of BBC iPlayer on our tv Platform was a real tipping point in consumer understanding of on-demand and we will continue this success with the ITV Player’.

‘Most watched’ figures were not released but they stated that videos by X Factor winners Alexandra (this year), and Leona Lewis (previous winner) received over one million views.

Virgin Media offers its on-demand and catch up service from the BBC, Channel 4, and soon ITV….who recently attempted to come together for ‘Project Kangaroo’ a joint VoD venture, but was refused by the Competition Commission (CC).

So for now the BBC iPlayer is clearly the leading force in online viewing, and its success is proof that it was a good move by the Corporation to bet its future on the internet, and according to BBC controller, Rahul Chakkara are still looking to expand ‘Following this success, we are working hard to bring BBC iPlayer onto other TV platforms.’

But will this mean permanent domination for the BBC iPlayer, or will it benefit others like Virgin Media to the point where they can catch up? James Murdoch, Chief Executive of News Corporation for Europe & Asia attacked the BBC last year saying ‘the iPlayer is a "big intervention" in the broadband TV market that had "hoovered up" otherwise useful or productive resources and "squashed other competitors". He went on to say ‘I'm not saying it is a bad product, but I am saying it does crowd out competition and innovation. But we have it now, so there you are,’ he added.

On the other hand, it is also clear to say that the on-demand TV service industry and on-demand sectors, have seen an uplift on the back of the iPlayer. So should also be grateful for the boost the iPlayer has brought with it.

With this in mind, is there room for competitors and will there be a ‘new’ iPlayer? No real reason for us to switch brands just yet….but then again, we didn’t think Facebook would overtake MySpace either! No doubt someone is up for the challenge, but who will it be……