Global Video on Demand Market: Overview
The global video on demand market is exploding in nature.
- The top 10 competitors in the market simultaneously held a little over 34% in 2015. Among the global strength in the field, Netflix, Inc. has maximum sway.
- On account of the exploding nature of the market which is teeming with satellite companies, service providers, cable networks, and online streaming websites, competition is furious.
- This is likely to manage supercharged growth in the market in the near future.
- Transparency Market analyzes reports delves deep into the global video on demand market by aspect in the current competitive scenario and trends.
- In order to give an in-depth look into the market, it segments it on the basis of service distribution channels into video on demand by cable TV DTH services, IPTV services. It also categories the market by content type into education and instructions, sports, TV commerce, and entertainment.
- If the estimates hold true, the market will exhibit a strong CAGR of 9.3% from 2020 to 2024.
Read More : Live Streaming Statistics for 2021
Global Video on Demand Market: Drivers and Trends
- Besides, the growing penetration of 5G broadband is also impacting the growth of this market. For example, in 2019, Nokia established its position with 42 commercial 5G deals in place with operators, globally, 22 with named customers, such as T-Mobile, Telia Company, and SoftBank.
- Approved initiatives by governments of various nations to encourage broadband penetration and to stay costs of IPTV services within affordable ranges, has helped the market substantially.
- Yet another important growth driver in the market is the attractive subscription offers like as unlimited access to top quality content by the best players in the market.
- Another factor improving uptake of video on demand is the price discounts resulting from the rising price wars among the existing players.
- One factor speaking the growth in the global video on demand market is the somewhat hasty physical infrastructure for IPTV systems which clashs a bandwidth-heavy service such as video on demand. In addition, bandwidth caps and stiff competition from established alternate services, namely direct to home and digital cable is also damping growth.
- The popularity for the OTT(Over the Top) platform is also affecting 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 major reason behind the surge in the popularity of OTT streaming platforms is the rising demand for unlimited access to original and high-quality content.
- Besides, the expanding film and media industry, mainly in countries like the United States, China, and India, is also likely to offer huge growth opportunity to the vendors for this market. After Netflix and Amazon, both Disney and Apple started streaming services in 2019 to cater to the vast opportunity for this market.
- The ongoing COVID 19 pandemic has led to lockdown all over the world. This lockdown has initiated 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.
- By the report of Rapid TV news, the global SVOD users is estimated to grow by 5% and amount to 949 million owing to the COVID-19 pandemic situation.
Global Video on Demand Market: Regional Outlook
- The global video on demand market in North America leads the maximum share. In 2020, its leading share stood at 40.0%.
- Although stepping ahead, Asia Pacific is attacked to outshine all other regions in terms of gaining market share on account of the growing penetration of the internet and the surge of mobile phones.
- In 2020-2025, the region is predicted to expand at CAGR of 9.7%
North America is Forecasted to keep the Largest Market Share
In U.S, The use of media content in North America is improving tremendously with a switch from traditional media to digital media. The rising internet speeds, coupled with the rising number of devices that support digital media, have offered the consumers with the freedom to access media content anywhere and anytime.
The growth in digital media industry, such as Apple TV, Amazon, Netflix, and Hulu, are demanding the traditional televisions that are noticed as entertainment hubs. Concurring to nScreenMedia, In last nine year, video streaming market has raised into a USD 16 billion firm due to the altering consumer preferences and demand for high-quality content.
Mobile devices have played a major role in offering to the overall growth of digital media consumption. furthermore, the growing number of smartphones wireless connections, internet usage are impacting the development of this market. According to Consumer Technology Association (CTA), ‘U.S. Consumer Technology Sales and predict’ study, 5G-enabled smartphone devices will outreach 2.1 million units and cross USD 1.9 billion in revenue, with triple-digit rises through 2021.
Subscription Video-on-demand (SVoD)? is predicted to drive the growth of the market in the country. Disney+ has started its digital streaming service in Canada in nov 2019 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.
Competitive Landscape but untapped in many pockets!
The trade for global video on demand is expected to be highly Intensed with the presence of major players, including Netflix, Inc., Amazon Inc., ZTE Corporation, Muvi LLC, and some others. But, the global market is being impacted by many regional players from countries, including China, India, South Korea, Malaysia, the UK, and others.
Besides, in recent years, the industry has skilled several market development related activities such as new product launch, partnerships, and acquisitions. There are still a lot of areas where we can improve on!