Video on Demand Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The Video on Demand Market is segmented by Business Model (Transactional Video on Demand (TVOD), Subscription Video on Demand (SVOD)), Application (Media & Entertainment, Education & Training, Health & Fitness), and Geography.
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
2018 - 2026
Fastest Growing Market:
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The Video on Demand Market is expected to grow at a CAGR of 12.2% over the forecast period (2021 - 2026). Video on Demand (VoD) offers a wide array of video programs that include entertainment, films, sports, and educational programs. Although VoD was initially in demand for movie access, with the changing customer preferences boosting the demand for TV programs and other content, VoD service providers had to expand their offerings to other content programmers.
Content-wise, Internet Protocol Television (IPTV) possesses high growth in the market, owing to the latest technological innovations in the domain. The rising availability of broadband internet services helps in increasing the demand for IPTV when compared to conventional television services. IPTV uses various servers for delivering streaming content to viewers, which minimizes the latency issues and optimizes the delivery speed by maximizing the available bandwidth.
Several service providers are providing advanced content delivery networks, considering the increasing demand for progressive media content to gain a competitive advantage. The IPTV market is expected to grow rapidly during the forecast period with the growing technological advancements, along with the emergence of infrastructure.
The growing demand for the OTT(Over the Top) platform is also influencing the growth of this market. According to comSe, around 50 million households have OTT video globally, which they consume following the same time-of-day pattern as traditional TV viewers. The main reason behind the surge in the popularity of OTT streaming platforms is the growing demand for unlimited access to original and high-quality content.
Additionally, the growing film and media industry, mainly in countries like the United States, China, and India, is also likely to offer massive growth opportunity to the vendors for this market. After Netflix and Amazon, both Disney and Apple launched streaming services in 2019 to cater to the enormous opportunity for this market.
The ongoing COVID 19 pandemic has led to the lockdown in all over the world. This lockdown has created a positive impact on the video-on-demand market as the restrictions on the movement of people during the pandemic have resulted in a lot of consumers across world streaming entertainment more and more. According to the estimates by Rapid TV News, the global SVoD users would grow by 5% and amount to 949 million owing to the COVID-19 pandemic situation.
Scope of the Report
Video on Demand (VoD) gives viewers, the liberty to accessing video content on computers, televisions, and mobile devices, irrespective of time, where, various providers help in making the content available to the customers. Some of these providers are retailers and technological outfits, TV providers, and movie studios. Moreover, the market is segmented by the Business Model, Application, and Geography.
Transactional Video-on-demand (TVoD)
Subscription Video-on-demand (SVoD)
Other Business Models
Media and Entertainment
Education and Training
Health and Fitness
Rest of the Europe
Rest of Asia Pacific
Middle East and Africa
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Key Market Trends
Enhanced Customer Viewing Experience Drives the Growth for Video on Demand Services
The primary reason behind watching video content is that it allows multiple users at the same place to watch distinct programs on various devices at the same time. The popularity of binge-watching enhanced customer viewing experience.
The other factor that has improved the viewing experience is convenience. The continuous integration of various contents across different devices is critical due to increasing customer preferences to watch the content anywhere and anytime on every device.
The widespread usage of mobile devices and increasing access to the internet has helped the customers to stay up-to-date with the digital world that reduces the need for waiting. The need for instant satisfaction is evolving as a powerful force in the consumer world, where the users are adopting online platforms for their entertainment purpose using devices like smartphones, tablets, and PCs.
Additionally, the growing penetration of 5G broadband is also influencing the growth of this market. For instance in 2019, Nokia confirmed its position with 42 commercial 5G deals in place with operators, globally, 22 with named customers, such as T-Mobile, Telia Company, and SoftBank.
Countries, such as India and China, have one of the highest mobile internet monthly usage. Hence major vendors in this market are implementing innovative strategies to cater the market potential of this untapped market. For instance, In 2019 Netflix launched mobile-only plan, exclusively in India, to bring a personalized experience to smartphone users of the country.
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North America is Expected to Hold the Largest Market Share
The consumption of media content in North America, especially in the United States, is increasing tremendously with a switch from traditional media to digital media. The increasing internet speeds, coupled with the rising number of devices that support digital media, have provided the consumers with the freedom to access media content anywhere and anytime.
The rise of players, such as Apple TV, Amazon, Netflix, and Hulu in the digital media field, are challenging the traditional televisions that are seen as entertainment hubs. According to nScreenMedia, the video streaming market in the country has grown into a USD 16 billion industry over the last nine years owing to the changing consumer preferences and demand for high-quality content.
Mobile devices have played a key role in contributing to the overall growth of digital media consumption. Moreover, the growing number of mobile wireless connections, internet usage are influencing the development of this market. According to Consumer Technology Association (CTA), ‘U.S. Consumer Technology Sales and Forecast’ study, 5G-enabled smartphone devices will reach 2.1 million units and cross USD 1.9 billion in revenue, with triple-digit increases through 2021.
Subscription Video-on-demand (SVoD) is expected to steer the growth of the market in the country. In November 2019, Disney+ had launched its digital streaming service in Canada and has been highly successful in signing up nearly two million subscribers by the end of 2019, which is implying the massive growth opportunity within the North American region.
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The market for global video on demand is anticipated to be highly concentrated with the presence of major players, including Netflix, Inc., Amazon Inc., ZTE Corporation, Muvi LLC, and some others. However, the global market is being influenced by many regional players from countries, including China, India, South Korea, Malaysia, the UK, and others. Additionally, the industry has experienced several market development related activities such as new product launch, partnerships, and acquisitions in recent years.
August 2020 -- Netflix announced to launch its user interface in Hindi to cater to the massive opportunities in the Indian market. Moreover, now Netflix members can switch to the Hindi user interface from the Language option in the ‘Manage Profiles’ section on their desktop, TV, or mobile browsers.
March 2020 -- The Walt Disney Company announced to launch Disney+ in UK, Ireland, Germany, Italy, Spain, Austria, and Switzerland. It gives its subscribers to access directly more than 500 films, 26 original movies and series, and thousands of television episodes from Disney, Pixar, Marvel, Star Wars, National Geographic and more.