The top ten companies in the global video on demand market held just over 34% share in 2015, signaling a rather fragmented vendor landscape. As per Transparency Market Research (TMR), Netflix, Inc., has emerged as the key contributor to this market trailed by Amazon.com, Inc., iTunes, Verizon Communication, LLC, YouTube, LLC, Ericsson, Maxdome GmbH, Hulu, LLC, Home Box Office, Inc., and Canalplay in no particular order. “Due to the strong presence of satellite companies, cable networks, service providers, and online streaming websites, the video on demand market witnesses the prevalence of a high degree of completion,” observed the TMR report’s author.
Price is a chief influence on the competition prevailing in the global video on demand market. As service providers compete to deliver exclusive digital content, maintaining price best suited to customers is considered crucial to remain competitive. Besides this, they are also leveraging expansion strategies by expanding their footprint across developing regions.
Spurred by these factors, the global video on demand market, which stood at US$33.32 bn in 2015 is expected to reach US$73.90 bn by the end of 2024. If the figures hold true, the global video on demand market will exhibit a CAGR of 9.3% between 2016 and 2024. Based on video model, the market was led by the subscription video on demand segment in 2015. By region, North America held the lead with nearly 40% share in the global video on demand market in 2015.
Easy Streaming of Digital Content is Helping Video on Demand Market Grow
The market is currently gaining from the easy availability of improved connectivity worldwide. In addition, the faster accessibility and streaming of digital content is also helping the market witness accelerated demand. “The rapid penetration of high-speed networks in broadband, television, and telephony services around the world has also boosted the demand for high-quality videos and better digital contents,” said a lead TMR analyst. This is a key factor aiding the markets expansion. In addition, the market is also forecast to gain impetus from the rising demand for interactive, seamless, and personalized viewing of digital content by subscribers.
Video on Demand Market Faces Threat from Illegal Sale of Digital Content
On the downside, rising concerns pertaining to illegal and unauthorized sale of digital content has been reducing the overall subscriptions as well as demand for the technology. This is threatening the market’s trajectory to an extent. Furthermore, the global video on demand market is also witnessing challenges associated with commercial agreements, licensing, and strategic alliances.
Nevertheless, as the demand for personal viewing is projected to scale higher, the market is will witness robust opportunities in the future. The market is also expected to gain from the latest technological advancements and the rising penetration of the internet worldwide.
This review is based on a TMR report, titled “Video on Demand Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.”
The report further segments the global video on demand market as:
Video on Demand Market, By Business Model
- Hybrid (SVoD + AVoD)
Video on Demand Market, By Content
- Education and Information
- TV Commerce
In addition, the report provides market analysis of the video on demand market with respect to the following geographical segments:
- 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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