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Availability of High-speed Data Networks to Continue Boosting Subscriptions for Video on Demand

04-17-2017 01:35 PM CET | IT, New Media & Software

Press release from: TMR

Availability of High-speed Data Networks to Continue Boosting

The top 10 players in the global video on demand market accounted for a share of just over 34% in 2015, signaling the rather fragmented nature of the competitive landscape. Netflix, Inc. is the key contributor to this market, followed by Amazon.com, Inc., YouTube, LLC, iTunes, Hulu, LLC, Home Box Office, Inc., Verizon Communication, LLC, Ericsson, Maxdome GmbH, and Canalplay.

“The degree of competition in the video on demand market is rather high and this can be attributed to the strong presence of service providers, satellite companies, cable networks, and online streaming websites,” the author of the study states.

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Price is a major factor impacting the competitive scenario in the global video on demand market. Service providers have been competing with other vendors to deliver exclusive digital content at a price best suited for their subscribers. Global expansion is also a key strategy as service providers look to increase their subscriber base. For instance, in 2014, Netflix expanded its network across Europe, covering countries such as Austria, Belgium, France, Luxemburg, Switzerland, and Germany. In January 2016, the popular on-demand video streaming service also became available in India.

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.

Subscription Video on Demand to Generate over US$10 bn in Revenue by end of 2016

The global market for video on demand, on the basis of business model, is led by the subscription video on demand (SVoD) segment, which accounted for US$10.6 bn in 2016 with a share of just under 30% that year. This segment is also projected to expand at a CAGR of 10.0% from 2016 to 2024, higher than any other business model. By content, the entertainment sector emerged as the leading segment in the global video on demand market in 2016. The sports segment, on the other hand, is anticipated to present a significant growth rate during the forecast period.

Based on geography, the video on demand market is dominated by North America, which accounted for an estimated share of just under 40% in 2016. Asia Pacific, registering a growth rate higher than any other regional segment, is projected to expand at a 9.7% CAGR from 2016 to 2024.

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Concerns Regarding Piracy and Complexities of Licensing Hampering Growth

“The availability of improved connectivity, faster accessibility and streaming of digital content, and the increased adoption of high-speed data networks in telephony, broadband, and television services around the world has given rise to the surging demand for high-quality videos and better quality of digital content in general,” says the lead analyst. This has significantly driven the market for video on demand.

Moreover, the rising demand for personalized, interactive, and seamless viewing of digital content by subscribers is fueling the global market. On the other hand, the rising concerns regarding the unauthorized and illegal sale of digital content has been reducing the number of subscriptions as well as demand for video on demand. Challenges associated with licensing, commercial agreements, and strategic alliances also threaten to hamper the global market.

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Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business Contact.

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