Video on Demand (VoD) Service Market to Soar at a CAGR of 8.3% by 2026
VoD is a technology that allows TV programmes, news, movies and sports events to be delivered directly to a set-top box, PC, smart IP TV, mobile phone via satellite TV, Internet network or cable network on demand. VoD service providers offer a platform to the digital video subscribers for gaining access to a vast library of multimedia content that they can watch as per their convenience. VoD subscribers can pause, rewind, stop and start viewing content as per their choice, irrespective of the location.
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VoD services enable users to record their favorite movies and shows, thus providing them an opportunity to watch particular shows and movies as per their convenience. The market has been witnessing a shift in viewing habits among teenage viewers. Another trend is growing preference for convenience and flexibility in accessing content (offered through smartphone and tablets, or by streaming content directly to TV), irrespective of the location. Additionally, the advent of advanced LCD TVs integrated with built-in Internet connectivity, which enables users to access VoD directly from TV, is further contributing towards the growth of the VoD market in the developed economies, including the U.S. and Western European countries.
On the basis of content type, the VoD service market is segmented into animation and others. The others ( it includes all the content on VoD space other than animation content, i.e., entertainment shows, series, short clips, movies, documentaries, news and sports) segment dominated the overall VoD service market in 2014, accounting for 83.6% market share in the year, and is projected to continue to dominate the market throughout the forecast period. The animation segment has been further sub-segmented into: kids, movies and others. Kids sub-segment includes all types of animated television series such as cartoon series, pre-school’s interactive learning contents such as games, animated fictions and tales and animated movies targeted at kids such as Inside Out (2015), and The LEGO Movie (2014). Movies sub-segment includes animated movie series especially aimed at teenagers and adults such as Batman, Iron Man and Superman movie series, and other movies based on Marvel comics, apart from movies such as Fritz the Cat, Fire and Ice, Watership Down, Akira and The Plague Dogs. Others sub-segment includes all types of games and animated learning contents developed to target teenagers and adults.
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This report covers trends driving each market segment and offers analysis and insights on the potential of the VoD service market across key regions, namely North America, Latin America, Western Europe, Asia Pacific excluding Japan (APEJ) and rest of the world. The North America market was the largest market for VoD service in 2014 wherein it was valued at US$ 18,148.8 Mn.
Increasing number of smartphone users and growing Internet penetration in countries such as India, China, Vietnam, Singapore and Philippines is expected to encourage growth of the VoD market in the APEJ region during the forecast period. The APEJ VoD service market is expected to expand at a CAGR of 14.6% during the forecast period in terms of value. Market participants, including VoD service providers, gaming content developers and third-party game providers such as TransGaming Inc., which licenses GameTree TV-a subscription-based on-demand cloud gaming service for smart TVs-are presently viewing emerging economies as potential revenue markets to capitalise on, during the forecast period. For instance, in January 2016, Netflix launched its VoD services in India.
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