Video on Demand Market: Snapshot
Video on demand (VoD) services are transforming the traditional television landscape by offering unique features such as high quality and exclusive video content on demand through broadband and mobile networks.
The VoD market is mainly driven by factors such as increasing internet-based consumer spending and the growing adoption of mobile devices to watch online videos. The surge in high-speed data networks has enabled VoD service providers to deliver faster streaming and downloading services to users. The demand for personalized as well as regional content viewing is also supplementing the growth of the video on demand market.
The global VoD market accounted for US$33.32 bn in 2015 and is expected to expand at a CAGR of 9.3% from 2016 to 2024 to reach US$73.90 bn by the end of the forecast period.
Growing Trend of Binge-watching Drives Demand for VoD
Based on content, video on demand can be segmented into sports, entertainment, education and information, and TV commerce. Entertainment is expected to emerge as the most rapidly growing content segment in the global video on demand market, with a CAGR of 9.5% over the course of the forecast period. The growing production of entertainment content such as movies, TV shows, and music by studios, record labels, and producers is mainly contributing to the growth of the segment.
The TV commerce segment accounted for a share of 24% in the global video on demand market in 2015. The increase in offerings of entire television series by video on demand service providers in keeping with the binge-watching trend has led to significant growth of this segment.
The sports segment is anticipated to witness increased demand for on-demand services due to the rise in premium sports events. Furthermore, the increasing viewership of high quality and live content is expected to increase the share of the sports content segment in the global market.
Surge in Volume of Subscribers Makes North America Leading Market for VoD Services
North America held the leading share of around 40% in the global video on demand market in 2015. The rising adoption of multiple business models such as transactional video on demand (TVoD), subscription video on demand (SVoD), and hybrid (SVoD + AVoD) by viewers is a prime factor driving the demand for video on demand services in North America. In addition, the volume of subscribers for on-demand services has increased due to a wide range of premium and exclusive content offered by on-demand service providers. The rising content production in the entertainment and TV commerce segments has also supplemented the overall growth of video on demand in the region.
Asia Pacific is anticipated to expand at a significant pace during the forecast period, registering a projected CAGR of 9.7% from 2016 to 2024. This is the result of increasing investments in the development of mobile broadband and high-speed networks. In addition, the increasing usage of connected devices such as smartphones, tablets, and smart TVs has driven the demand for VoD services in the region. The growing viewership of sports content is also expected to boost the video on demand market in Asia Pacific.
Europe held a share of around 30% in 2015 and is anticipated to expand at a healthy growth rate during the forecast period. This is primarily due to the rising presence of video on demand service providers in the region. Regional video on demand service providers hold a strong foothold in the market due to a wide range of content being offered in regional languages.
The major players in VoD market include Amazon.com, Inc., Home Box Office, Inc., Hulu LLC, iTunes (Apple, Inc.), Netflix, Inc., Telefonaktiebolaget LM Ericsson (Ericsson Television), Verizon Communication, LLC, YouTube, LLC, maxdome GmbH, and Canalplay.
This report provides an analysis of the global video on demand market for the period from 2016 to 2024, wherein the period from 2016 to 2024 comprises the forecast period and 2015 is the base year. Data for 2014 is provided as historical information. The report covers all the major trends and technologies playing a major role in the growth of the video on demand market over the forecast period. It also highlights various drivers, restraints, and opportunities expected to influence the market’s growth during this period. The study provides a holistic perspective of the growth of the video on demand market throughout the forecast period in terms of revenue estimates (in US$ Bn), across Asia Pacific (APAC), Latin America (LATAM), North America, Europe, and Middle East & Africa (MEA). The report provides a cross-sectional analysis of the global video on demand market in terms of market estimates and forecasts for all the segments across different geographic regions.
Video on demand services enable users for streaming and downloading of a wide range of digital contents. The rising demand for customized viewing of digital content has led to the significant growth of video on demand market around the globe. In addition, the consumption of on demand services through mobile platforms is increasing due to rising penetration of internet, and smartphones. The growing improvements in high-speed network for streaming of videos is increasing the adoption of on demand services. Video on demand service providers are offering unique features such as unlimited access to content, and high quality videos to increase the subscriber base. Furthermore, content producers such as studios, and record labels are partnering with video on demand services providers to release their contents through on demand services supplementing the overall growth of video on demand market. The adoption of regional content is growing due to a wide range of digital content offered by video on demand service providers in regional languages across the world. Moreover, changing consumer preferences from traditional television viewing to on demand services is contributing to the growth of global video on demand market. This is primarily due to proliferation of smart TV adoption, and rising demand for premium contents.
On the basis of business model, video on demand market is segmented into transactional video on demand (TVoD), subscription video on demand (SVoD), advertisement video on demand (AVoD), and hybrid (SVoD+ AVoD). Based on the content, video on demand market is segmented into the sports, entertainment, education & information, and TV commerce segments. The report also includes competitive profiling of the major players associated with the video on demand market. The important business strategies adopted by them, their market positioning, and recent developments have also been identified in the research report. The growing adoption of video on demand services has led to the increasing presence of video on demand service providers. The major players in video on demand market include Amazon.com, Inc., Home Box Office, Inc., Hulu LLC, iTunes (Apple, Inc.), Netflix, Inc., Telefonaktiebolaget LM Ericsson (Ericsson Television), Verizon Communication, LLC, YouTube, LLC, maxdome GmbH, and Canalplay.
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