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Video-on-Demand Market (VOD) Market Size, Share and Forecast 2026
Video-on-Demand Market (VOD) Market
, September 05, 2019 )
Video-on-Demand is defined as premium over-the-top Video-on-Demand (VoD) content, distributed over the internet. This includes three fee-based business models: firstly, rentals as a single transaction or pay-per-view (TVoD), second, rentals as subscription-based services (SVoD) and third, digital purchases via download or permanent cloud-storage (video downloads, also named electronic-sell-through or EST).
VoD service provides a wide range of video content such as movies, music, TV series, and sports to users for streaming and downloading. Furthermore, VoD systems deliver the services to users through multiple platforms and connected devices such as smartphones, tablets, computers, cable television, and smart TVs.
The global VoD market is primarily driven due to growing adoption of mobile devices for watching online videos and increasing internet based consumer spending. VoD solutions help viewers reach any connected device, providing key competitive advantage in terms of consumer reach. In addition, the rapid developments in high-speed networks are enabling video on demand service providers to deliver faster downloading and streaming service to users. The adoption of mobile TV and multi-screen services for content viewing is increasing.
Moreover, increasing penetration of smartphones and growing online users across the world are expected to provide prominent opportunities for the video on demand market. Online media consumption has shown enormous growth over the past few years. Mobile has been the preferred medium of consuming online media. The smartphone market has also grown significantly in the last 5 years.
By product, the global VoD market is segmented into SVoD, AVoD, and TVoD. In 2018, SVoD accounted for the highest market in global VoD market. SVOD refers to subscription video on demand. It is similar to traditional TV packages; allowing users to consume as much content as they desire at a flat rate per month. With SVOD, there is far greater freedom to opt out as users are not tied into a long term contract. This offers greater flexibility to users. Consequently, providers of SVOD are challenged with retaining consumers.
TVOD, or transactional video on demand as it is known, is the opposite to subscription video. With TVOD, consumers purchase content on a pay per view basis. There are two sub-categories known as Electronic Sell Through, by which consumers have permanent access to a piece of content once purchased; and download to rent where customers can access the content for a limited time upon renting. TVOD services tend to offer more recent releases, which is beneficial to rights holders for higher revenues and for consumers for getting timely access to new content. AVOD refers to advertising, or ad based, video on demand, and is free to consumers. However, much like television, consumers will have to sit through advertisements, for instance on YouTube where ad revenue is used to offset production and hosting costs.
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 contents, VoD service providers had to expand their offerings to other content programmers.
By geography, the global VOD market is segmented into
Global VoD Market is a concentrated with the presence of few global and regional players in the market. Creating consumer awareness by aggressive marketing strategies and greater visibility of products across various channels are other steps taken by market participants to generate demand. Initially, vendors offered VOD services through websites. However, the increasing use of mobile computing devices encouraged them to develop mobile applications which can stream videos. The use of such applications simplifies the process of payments. They also collect the personal details of consumers, which can be used to retain them through targeted advertising.
Intense rivalry among top players in the market has started fierce competition at various levels for setting low price, driving aggressive marketing strategies, and new and innovative service launches as per consumers preference.
In 2018, AT&T Inc. completed its acquisition of Time Warner Inc., bringing together global media and entertainment leaders Warner Bros., HBO and Turner with AT&Ts leadership in technology and its video, mobile and broadband customer relationships.
Major players in the market are Apple Inc., Alphabet, Amazon.com, Inc., AT&T, The Walt Disney Company, and Netflix, others.
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