Video on Demand Market boosting uptake in 2025
Video on demand (VoD) refers to an interactive TV technology wherein subscribers can view programs in real time or download them to be viewed later. It enables individual customers in an area to view programs of their choice, making the video rental shop system to be brought into home a reality.
The emergence of video on demand is bringing a sweeping change in home entertainment. On-demand video such as Netflix and Hulu are increasingly becoming a big part of media entertainment for streaming movies and television shows that offered niche services at one time. Video on demand streaming is increasingly becoming a commonality in American homes. Not only this, many homes have subscription to multiple video on demand services and are viewing more content than subscribers of conventional satellite or cable television. As such, video on demand streaming is emerging as a big business lately.
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VoD is used for streaming video on demand, local news and weather forecasting, education and remote learning facilities, banking, games, music, and leisure, and home shopping and other consumer services.
Video on Demand lacks universal standardization as the underlying technologies are in nascent stage. Nevertheless, several research institutes and commercial organizations have set-up de-facto standards and resultantly there are several operational VoD-related services that are available today. Inadequate network bandwidth resulting in bottlenecks and long download times is another impediment that video on demand is faced with since its inception in 1990. VoD is economical for content streaming over a wide geographical area or over satellite-based network that display modest content streaming demand.
Global Video on Demand Market: Overview
The global video on demand market is fragmented in nature. The top 10 players in the market together held a little over 34% in 2015. Among the global powerhouses in the field, Netflix, Inc. has maximum sway. On account of the fragmented nature of the market which is teeming with satellite companies, service providers, cable networks, and online streaming websites, competition is red hot. This is likely drive supercharged growth in the market in the near future.
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A report by Transparency Market Research delves deep into the global video on demand market by factoring in the current competitive scenario and trends. In order to provide a thorough peek into the market, it segments it on the basis of service distribution channel into video on demand by cable TV services, video on demand by DTH services, video on demand by IPTV services. It also classifies the market by content type into education and information, sports, TV commerce, and entertainment. The global video on demand market was worth US$33.32 bn in 2015 and is predicted to be worth US$73.90 bn by 2024. If the estimates hold true, the market will exhibit a robust CAGR of 9.3% from 2016 to 2024.
Global Video on Demand Market: Drivers and Trends
Driving the soaring popularity of video on demand is the web’s ever-expanding reach and the seamless, speedy connectivity made possible with the rollout of 4G services and LTE. Favorable initiatives by governments of different nations to encourage broadband penetration and to keep costs of IPTV services within affordable ranges, has helped the market substantially. Yet another crucial growth driver in the market is the attractive subscription offers such as unlimited access to high quality content by the leading players in the market.
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Another factor boosting uptake of video on demand is the price discounts resulting from the rising price wars among the existing players. Further, savvy content producers such as studios and record labels are increasing collaborating with video on demand service producers to promote their content, which is bolstering the market further.
One factor countering the growth in the global video on demand market is the somewhat shoddy physical infrastructure for IPTV systems which impacts a bandwidth-heavy service such as video on demand. Besides, bandwidth caps and stiff competition from established alternate services, namely direct to home and digital cable is also damping growth.
Global Video on Demand Market: Regional Outlook
North America leads the global video on demand market with maximum share. In 2016, its leading share stood at 40.0%. However, going forward, Asia Pacific is slated to outshine all other regions in terms of gaining market share on account of the growing penetration of the internet and the proliferation of smart devices such as smartphones, tablets, and video game consoles. The region is forecasted to expand at CAGR of 9.7% during 2016 and 2024.
Companies Mentioned in Report
To present an in-depth assessment of the competition prevailing in the global video on demand market, the report profiles companies such as Direct TV Inc., Netflix Inc., Comcast Corp., Dish Network Corp., Hulu.com, Verizon FIOS, Apple Inc., Google Inc., and Blikbox.
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