Video on Demand Market size is set to surpass USD 175 billion by 2026, according to a new research report by Global Market Insights Inc.
Ease of fast internet connectivity globally ensures seamless audio-visual experience, driving the video on demand market demand. There is a sharp rise in the number of smartphone users, leveraging the benefits of content on demand on their devices. Development in cloud is projected to provide growth opportunities to the market. By adopting a cloud-based model, Video on Demand providers can entirely rely on the cloud service for networking and infrastructure.
Many companies are collaborating with cloud providers to launch new services without expanding technical resources to manage and maintain IT infrastructure. Integration with cloud enables these service providers to reach global audience and dynamically scale their workloads. Tencent Cloud offers VoD solution that integrates video or audio upload, media asset management, live recording, content delivery acceleration, video AI, automated transcoding, and player SDKs.
Advancements in wireless technologies enable seamless and fast streaming of online content contributing to the VoD market expansion. The rapid adoption of internet technology has ensured enhanced visual experience to users without buffering time. Wireless technologies, such as Bluetooth and Wi-Fi, enable hassle-free interconnection of soundbars with smart TVs and phones, triggering the demand for high-quality VoD content to be viewed on large screens. Developments in IT & telecom infrastructure will provide new opportunities for media services that can be provided over mobile networks including, multi-player video game streaming, virtual reality experiences, and HD live broadcasting of big events.
Government organizations in several countries have declared temporary closure of schools, institutions, corporate offices, and museums & theatres to maintain social distancing measures to contain the spread of coronavirus (COVID-19). This has led to an increasing number of people searching for VoD content for entertainment as well as education. Prominent players in the industry, such as Netflix, Amazon, and the Walt Disney Company, have witnessed a rise in the number of subscribers post the pandemic.
Browse key industry insights spread across 300 pages with 256 market data tables and 27 figures & charts from the report, “Video on Demand (VoD) Market Size By Type (Internet Protocol Television (IPTV), Over-The-Top (OTT), Pay Television (Pay-TV)), By Revenue Model (Advertisement, Hybrid, Subscription, Transactional), By Application (Education & Training, Health & Fitness, Media & Entertainment), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Growing popularity of electronic learning for students and employees will boost the market growth
The education & training segment held 11% of the video on demand market share in 2019 and is expected to showcase 20% growth rate through 2026. Increasing internet penetration has surged the demand for digital learning courses. The temporary closure of educational institutions due to spread of coronavirus has fueled the demand for sophisticated online learning courses. World bodies and multilateral organizations, such as G20 and WHO, are also utilizing electronic communication modes to train healthcare professionals about hygiene and preventive measures to be followed during the ongoing pandemic.
OTT segment to observe substantial growth with growing popularity of online gaming for enhanced customer experience
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The over-the-top (OTT) platform is estimated to attain a CAGR of 18% till 2026 impelled by the growing popularity of customized gamification for customer engagement. OTT platforms are using gamification as an engagement strategy. Integrating gamification into social media, marketing, and digital brand is a social engagement strategy. Gamification helps to amplify content and brand awareness.
Hybrid revenue model will influence the video on demand market progression
Hybrid revenue model accounted for around 10% of revenue market share in 2019 and is poised to expand at 13% CAGR during 2022 to 2026. The primary revenue model includes Advertising Video on Demand (AVOD), Transactional Video on Demand (TVOD), and Subscription Video on Demand (SVOD). Platforms, such as YouTube, that offer content for free, gain from advertising while platforms, such as Hulu and Netflix, follow subscription-based models. A hybrid model combines the benefits of TVOD, AVOD, and SVOD models.
North America will observe significant industry growth due to advanced infrastructure
The North America Video on Demand market dominated a revenue share of over 47% in 2019 and is predicted to register 15% growth till 2026. Advanced digital infrastructure in countries including the U.S. and Canada will contribute to the market revenue. The strong telecom sector in the U.S. will favor the acceptance of on-demand services. Robust technology and IT infrastructure in the region that enable smooth connectivity of several devices in smart homes will encourage more users to adopt advanced media streaming services.
Several platform providers, such as Netflix and Amazon Prime, are collaborating with film producers for the direct release of movies on digital streaming platforms. The closure of theatres to ensure social distancing during COVID-19 is further propelling the industry expansion.
Strategic alliances with technology providers to launch enhanced solutions is a key trend in the industry
Major players operating in the VoD market include Viacom CBS, Rakuten, HBO, Netflix Inc., Limelight Networks, Tencent Holdings Ltd., the Walt Disney Company, Amazon Inc., and Google LLC. The global industry is competitive with regional as well as global leader focusing on providing customer-oriented content. Industry participants are expanding their client base by increasing the content and offering flexible payment options. Companies are also leveraging the benefits of cloud technology to strengthen their market presence.
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