Transparency Market Research in one of its recent publications reveals the global video on demand market to display a fragmented vendor landscape, with the top ten players holding only about 34% share of the market in 2015. However, the market is highly competitive on account of strong outreach of service providers along with prominence of cable networks, satellite companies, and online streaming websites.
Price is a key factor that is having a significant impact on the competition in this market. Savvy companies are striving to offer exclusive digital content at competitive prices to expand their subscriber base. Global expansion into newer regions is another key strategy leveraged by key players in this market. For example, in 2014, Netflix Inc.- the key vendor in the market, expanded services across Europe to cover countries such as Austria, France, Germany, Belgium, Luxemburg, and Switzerland. In January 2016, Netflix made its on-demand video streaming service available in India.
A report by Transparency Market Research projects the global video on demand market to expand at a healthy 9.3% CAGR during the period between 2016 and 2024, for the market to become US$73.90 bn by the end of 2024 from US$33.32 bn in 2015.
The segment of subscription video, based on business model leads the market holding for a share close to 30% in 2016. Amongst all, the segment is expected to display the leading CAGR of 10.0% between 2016 and 2024. Entertainment stood as the leading segment by content in 2016. The sports segment, however, is expected to display significant growth rate over the forecast period.
North America leads among other regional markets for video on demand. The region held a share close to 40% in the overall market in 2016. Asia Pacific is expected to expand at the leading CAGR of 9.7% between 2016 and 2024.
Surging Demand for Personalized Digital Content Driving Market
The rising demand for viewing customized digital content enabled by improved connectivity and faster accessibility is the foremost factor driving the global video on demand market. According to the lead analyst of the study, “increased subscription to high-speed data services via broadband and mobile networks has led to the surging demand for high-quality digital content in general.” With surge in high-speed data networks, video on demand service providers can deliver faster streaming along with faster downloading for users. The increasing demand for regional content is also driving subscription for video on demand services. These factors are positively influencing the video on demand market.
In addition, the increasing demand for personalized, interactive, and seamless digital content viewing experience is fuelling the growth of this market.
Concerns Regarding Unauthorized Sale of Digital Content Crimps Growth
Proving a hindrance to the growth of global video on demand market is rising concerns regarding the unauthorized and illegal sale of digital content. As a result, the number of subscriptions as well the demand for video on demand have been impacted. Apart from this, licensing, commercial agreements, and strategic alliances are also acting as roadblocks to the growth of global video on demand market.
The review presented here is based on the findings of a report by Transparency Market Research, titled “Video on Demand Market (Business Model - Transactional Video on Demand, Subscription Video on Demand, Advertisement Video on Demand, Hybrid (SVoD & AVoD); Content – Sports, Entertainment, Education and Information, TV Commerce) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.”
The global video on demand market has been segmented as follows:
Video on Demand Market, by Business Model
- Hybrid (SVoD + AVoD)
Video on Demand Market, by Content
- Education and Information
- TV Commerce
Video on Demand Market, by Geography
- North America
- The U.S.
- The U.K.
- Rest of Europe
- Asia Pacific (APAC)
- Rest of APAC
- Middle East and Africa (MEA)
- The UAE
- Saudi Arabia
- South Africa
- Rest of MEA
- South America
- Rest of South America
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