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Video On Demand Market: Future Demand and Growth Analysis

10-17-2017 05:04 PM CET | IT, New Media & Software

Press release from: Future Market Insights

/ PR Agency: Future Market Insights
Video On Demand Market: Future Demand and Growth Analysis

The leading ten vendors in the global Video On Demand Market collectively accounted for a mere 34% of the overall market in 2015, hinting at a largely fragmented vendor landscape and an intense level of competitive rivalry, says Transparency Market Research in a recent report. The level of competition in the market continues to soar up as the outreach of service providers, effectiveness of cable networks, and the numbers of online streaming websites and satellite companies increase at a significant pace.

In the highly competitive market, cost of services is one of the key determinants of success and companies, vying for a larger consumer base, are offering exclusive content at competitive costs. Aggressive geographical expansion strategies are being adopted to claim evolving regional territories with high potential of growth. For instance, Netflix Inc. expanded its video on demand services in India in 2016.

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A report by Transparency Market Research projects the global video on demand market to expand at a healthy 9.3% CAGR during the period between 2016 and 2024, for the market to become US$73.90 bn by the end of 2024 from US$33.32 bn in 2015.

North America Emerges as Clear Leader in Global Video on Demand Market

On the basis of business model, the segment of subscription video dominated the market, accounting for a nearly 30% of the global market in 2016. The segment is also expected to display the leading CAGR of 10.0% over the report’s forecast period. In terms of content, the segment of entertainment amassed the leading share of revenue in 2016. However, the sports segment is expected emerge as the one with the most promising growth rate over the forecast period.

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North America, accounting for over 40% of the revenue amassed by the global market in 2016, is the clear leader in the VoD market, chiefly owing to the historic and strong presence of content developers and numerous VoD service providers in the region. The popularity of animation content and the rising demand for various animation series, partnerships between content providers and consumer electronics companies, and lucrative deals offered by companies to gain subscriptions are some of the key factors that continue fueling the North America VoD market in the near future.

Rising Popularity of Personalized Digital Content Driving Market

Factors such as faster accessibility and improved internet connectivity have significantly increased the demand for customized digital content across the globe. Rising number of consumers of high-speed data services via mobile and broadband networks are also leading to the increased consumption of high-quality digital content. The increased demand for regional content is also leading to an increased demand for video on demand services. Along with these factors, the increased demand for seamless, interactive, and personalized digital data viewing experience is also driving the global video on demand market.

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Concerns Regarding Unauthorized Digital Content Trade Could Hamper Growth

One of the key challenges hindering the overall growth prospects of the global video on demand market is the rising concern regarding the illegal and unauthorized release and streaming of digital content on a number of websites. Owing to this, the demand for video on demand services as well as the number of subscriptions is severely impacted. Moreover, factors such as strategic alliances, commercial agreements, and licensing are also acting as roadblocks to the overall development of the market.

About Us

Future Market Insights is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India.

FMI’s research and consulting services help businesses around the globe navigate the challenges in a rapidly evolving marketplace with confidence and clarity. Our customised and syndicated market research reports deliver actionable insights that drive sustainable growth. We continuously track emerging trends and events in a broad range of end industries to ensure our clients prepare for the evolving needs of their consumers.

FMI’s team of over 200 research analysts provides market intelligence at global, regional, and country level. Our analysts are committed to provide independent insights, relying on our cognitive defusion training module, which conditions them to look at data objectively and unbiasedly.

Contact

Future Market Insights
616 Corporate Way, Suite 2-9018,
Valley Cottage, NY 10989,
United States
USA T: +1-347-918-3531
Email: sales@futuremarketinsights.com
Website: www.futuremarketinsights.com

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