For nearly half a century, television has remained the solitary mode of video infotainment, progressing beyond audio entertainment that radio could offer. However, television broadcasters reserve the rights to the content they provide, at the time of their choice, and it significantly reduces options for the consumers.
In the past decade, on the back of growing ubiquity of smartphones and radically improved broadband internet networks, the concept of video on demand (VoD) has gained strong popularity. Consumers can now decide and consequently pay only for the video content they wish to watch – be it movies, games and music, news, and live event streaming, or others.
According to this business intelligence study, the demand in the global video on demand market will multiply at a formidable CAGR of 9.3 percent during the forecast period of 2017–2024. In terms of revenue, the global VoD market is estimated to produce opportunities worth USD 73.90 billion by the end of 2024, substantially more than the market’s evaluated worth of merely USD 39.63 billion as of 2017.
The flexibilities offered by VoD in a highly competitive paid televisions market, improved customer viewing experience with high-quality content and independent of time-bondage or repetitions, and options to provide for diverse content to global audiences are some of the key factors augmenting the demand in the VoD market.
On the other hand, difficulties pertaining to achieving negotiable content licensing, the need to improve capacity of set-top boxes, and concerns pertaining to video piracy are a few restraints challenging the VoD market from flourishing.
Possibilities of integration of a wide array of services along with VoD are expected to open new opportunities in this market in the near future. In the past couple of years, a number of governments have come down hard on torrent websites. Additionally, growing competition as a result of entrance of new players is luring newer consumers with hefty offers and is expected to reflect positively over the VoD market in the long run.
SVoD and AVoD emerge as key business model segments. On the basis of the business model, the VoD market is segmented into transactional video on demand (TVoD), subscription video on demand (SVoD), advertisement video on demand (AVoD), and hybrid, which is a combination of AVoD and SVoD.
As of 2017, SVoD and TVoD were the two segments that provided for the maximum demand and are primed to retain their positions. By the end of 2024, global markets for SVoD and TVoD are estimated to be worth USD 19.26 billion and USD 22.69 billion, respectively.
Based on content type, the market is bifurcated into entertainment, sports, TV commerce, and education and information. Among these, the entertainment and sports categories are showing greater promise than the rest.
Asia-Pacific is a highly opportune region for the VoD market. North America and Europe continue to be the most lucrative regions in this market. However, the vastly populated region of Asia-Pacific (APAC) has two of the most promising emerging economies in China and India, wherein disposable income of the urban population is increasing and lifestyles are changing. The North America VoD market is estimated to be worth USD 28.31 billion by the end of 2024, whereas the APAC market is poised for an above-average CAGR of 9.7 percent.