The market was valued at USD 51.59 billion, in 2016, and is projected reach a value of USD 86.12 billion, by end of 2022, registering a CAGR of 8.93%, during the forecast period of 2017-2022.
VoD offers a superior user interface and experience, as compared to linear TV offerings. With a broad range of VoD programming preferences, viewers can stream or download content from either a TV package or an online source, creating extensive growth prospects for the service providers in this market.
Worldwide media consumption, has witnessed rapid growth over the recent years, owing to a rise in the number of devices supporting digital media, combined with the increasing internet penetration. This has presented end-users with on-demand access to the media content for entertainment, information, or social activity. Furthermore, growing demand for tailored viewing of digital content, paired with the mounting consumption of on-demand services through mobile platforms, is anticipated to fuel the growth of the VoD market, over the next few years.
IPTV TO DRIVE THE VoD MARKET OVER THE FORECAST PERIOD
IPTV denotes a television system, where the services are provided through internet-based IP network, giving an enhanced overall experience, as compared to other conventional television services. Digital technologies, fuelled by the advanced infrastructure and cloud technologies, are offering customers high speeds and convenience, thus, enabling them to adopt IPTV. Major benefits of IPTV, such as, control over viewing time, a wide variety of choice, easy access to numerous devices, and flexibility in the mode of consumption, is stimulating its popularity. Several service providers are also providing advanced content delivery networks to meet the demand for exclusive media content, to gain a competitive advantage.
NORTH AMERICA HOLDS THE LION’S SHARE
North America occupies the largest market share, while Asia-Pacific is the fastest growing region in the global landscape. The increasing availability of video content in the entertainment sector, and the availability of various business models, are the primary reasons for the growth of the North American VoD market. Furthermore, the proliferation of connected devices, and increased expenditure on video services, is anticipated to fuel the market growth in the region, over the forecast period.
AT&T ACQUIRED THE CABLE TELEVISION GIANT TIME WARNER
In October 2016, AT&T had plans to acquire the cable television giant Time Warner Cable for $109 billion, including net liabilities. The transaction was believed to expand the distribution of Time Warner content through AT&T’s network, and was expected to yield increased revenue through subscriptions and advertising, while building a streaming video service that offered an alternative to traditional cable packages. The acquisition was expected to enable the company to also invest in new content, which would be well-positioned for the tremendous growth occurring in DIRECTV OTT platform, as well as, VoD for all the end- user devices.
NOTABLE MARKET DEVELOPMENTS