Video on Demand Market: Trends, Drivers, and Restraints Forecast 2016 – 2023
Video on demand (VoD) services mainly deal with online movie rental systems on subscription basis. Large number of movie releases across the globe every month have significantly affected the demand for movies over online platforms amongst the viewers. With the help of VoD, the user can watch any content as per his/her wish at any place and anytime. VoD enables a user to stream the movie or content in real time on their systems such as computer or any mobile device with the help of Internet connectivity.
The user can also download required content through set top box or portable media players such as digital video recorders. VoD business model mainly revolves around the concept of pay per view, subscription or rental basis. Furthermore, the user is provided enough flexibility to decide the quality of video he/she wishes to view and pay as per the usage.
Video on Demand (VoD) Market: Trends, Drivers, and Restraints
The market for VoD has witnessed significant growth during the past few years. Augmented bandwidth allocation to deliver high quality video has affected the VoD market greatly to deliver high quality contents without any lag or delay. Furthermore, penetration of smart mobile devices in the global market has helped the demand for VoD services to grow exponentially.
Smart mobile devices are making viewing experience better and convenient.
However, the market growth is hindered greatly due to movie piracy, as the movies broadcasted online are leaked by several anti-social elements. This has greatly affected the market for VoD in most of the emerging economies of Asia Pacific and Middle East and Africa (MEA).
Video on Demand (VoD) Market: Segmentation
The global VoD market is segmented on the basis of broadcasted contents, delivery technology, type of service providers, business model adopted by service providers and geography. Segmentation on the basis of contents which are broadcasted across VoD includes sports, entertainment, education and information, TV commercials and digital library. Digital library is inclusive of songs, eBooks, and podcasts.
In terms of delivery technology, the VoD market is segmented into Internet Protocol TV (IPTV), set-top box (STB), digital video recorder (DVR) or portable media player, mobile device, and streaming media devices. Business models adopted by the service providers in the VoD market are transaction VoD (TVoD), subscription VoD (SVoD), advertised VoD (AVoD) and hybrid model (AVoD + SVoD).
Transaction VoD can be further segmented into download to own (DTO) and download to rent (DTR). Geographically the global VoD market is segmented into North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Video on Demand (VoD) Market: Top Players
Types of service providers operational in the market encompasses media companies, DTH service providers, cable TV or Telco TV, independent VoD companies and cable & satellite TV networks. Media companies providing VoD reported in the study include Netflix Inc., Hulu LLC, YouTube LLC, and Amazon.com Inc. Cable TV or Telco TV providers operational in the VoD market include AT&T U-Verse and Verizon Fios. Independent VoD companies in the market include Ericsson Television and Alcatel-Lucent S.A.
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