Press release
Video on Demand Market: Availability of High-speed Data Networks to Boost Subscriptions for Video on Demand
Video on demand (VoD) services are transforming the traditional television landscape by offering unique features such as high quality and exclusive video content on demand through broadband and mobile networks.The VoD market is mainly driven by factors such as increasing internet-based consumer spending and the growing adoption of mobile devices to watch online videos. The surge in high-speed data networks has enabled VoD service providers to deliver faster streaming and downloading services to users. The demand for personalized as well as regional content viewing is also supplementing the growth of the video on demand market.
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.
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Growing Trend of Binge-watching Drives Demand for VoD
Based on content, video on demand can be segmented into sports, entertainment, education and information, and TV commerce. Entertainment is expected to emerge as the most rapidly growing content segment in the global video on demand market, with a CAGR of 9.5% over the course of the forecast period. The growing production of entertainment content such as movies, TV shows, and music by studios, record labels, and producers is mainly contributing to the growth of the segment.
The TV commerce segment accounted for a share of 24% in the global video on demand market in 2015. The increase in offerings of entire television series by video on demand service providers in keeping with the binge-watching trend has led to significant growth of this segment.
The sports segment is anticipated to witness increased demand for on-demand services due to the rise in premium sports events. Furthermore, the increasing viewership of high quality and live content is expected to increase the share of the sports content segment in the global market.
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Surge in Volume of Subscribers Makes North America Leading Market for VoD Services
North America held the leading share of around 40% in the global video on demand market in 2015. The rising adoption of multiple business models such as transactional video on demand (TVoD), subscription video on demand (SVoD), and hybrid (SVoD + AVoD) by viewers is a prime factor driving the demand for video on demand services in North America.
Asia Pacific is anticipated to expand at a significant pace during the forecast period, registering a projected CAGR of 9.7% from 2016 to 2024. This is the result of increasing investments in the development of mobile broadband and high-speed networks.
In addition, the increasing usage of connected devices such as smartphones, tablets, and smart TVs has driven the demand for VoD services in the region. The growing viewership of sports content is also expected to boost the video on demand market in Asia Pacific.
Europe held a share of around 30% in 2015 and is anticipated to expand at a healthy growth rate during the forecast period. This is primarily due to the rising presence of video on demand service providers in the region. Regional video on demand service providers hold a strong foothold in the market due to a wide range of content being offered in regional languages.
The major players in VoD market include Amazon.com, Inc., Home Box Office, Inc., Hulu LLC, iTunes (Apple, Inc.), Netflix, Inc., Telefonaktiebolaget LM Ericsson (Ericsson Television), Verizon Communication, LLC, YouTube, LLC, maxdome GmbH, and Canalplay.
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