Global Video on Demand (VoD) Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

Recent Developments

• In January 2024, Evision strengthened its strategic alliance with Disney Star, aiming to deliver South Asian entertainment content to audiences throughout the Middle East & Africa (MENA) region.
• In August 2023, DistroTV forged a collaboration with Network18, enabling users in India to access Network18's diverse range of channels live and free of charge through the DistroTV platform.
• In July 2022, Netflix revealed a collaboration with Microsoft to introduce advertising tools and sales, aiming to incorporate advertisements into the platform. They introduced a new plan called the Basic Standard Premium plan, intending to attract new subscribers in regions where premium subscriptions are less common.
• In May 2022, Amazon Prime Video struck a multi-film licensing agreement with Sajid Nadiadwala's Nadiadwala Grandson Entertainment (NGE). This partnership allows Amazon Prime Video to host NGE's upcoming films shortly after their theatrical release, accessible to all Prime members. The films are available for rent on Amazon Prime Video during the 'Early Access Rental' window, catering to all Amazon customers, whether Prime members or not.

The market comprises various components, including Solutions and Pay-TV (Cable TV and Direct to Home Services), IPTV, Over-the-Top (OTT) Services, and Services. Pay-TV services encompass traditional cable and DTH offerings, while IPTV and OTT services provide streaming content over the internet. Services segment encompasses service providers offering content delivery, management, and support. Monetization models such as Transaction-Based, Subscription-Based, Advertising-Based, and Others influence revenue generation strategies. Subscription-based models dominate, driven by the popularity of streaming services like Netflix and Amazon Prime. Advertising-based models leverage targeted ads to monetize content, while transaction-based models involve one-time payments for individual content purchases.

The video streaming market caters to diverse industry verticals, including Media, Entertainment, & Gaming, Travel & Hospitality, Education, and Others. Media, Entertainment, & Gaming sector holds a significant share due to the demand for streaming services for movies, TV shows, and gaming content. The Travel & Hospitality and Education sectors are also adopting video streaming for various purposes, such as virtual tours and online learning. The market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. North America and Europe dominate the market due to high internet penetration, strong infrastructure, and early adoption of streaming services. The Asia Pacific region is witnessing rapid growth driven by increasing smartphone penetration and rising disposable incomes. Middle East and Africa, and Latin America regions are also experiencing growth, albeit at a slower pace, attributed to improving internet connectivity and evolving consumer preferences.

Global Video on Demand (VoD) Segment Analysis

The Global Video on Demand (VoD) Market has been segmented by Component, Monetization Model, Industry Vertical and Geography.

Global Video on Demand (VoD) Market, By Component

The Global Video on Demand (VoD) Market has been segmented by Component into Solutions, Pay-TV, IPTV, Over-the-Top (OTT) Services and Services.

Solutions encompasses technological solutions tailored for VoD delivery, management, and user experience enhancement. Solutions may include content management systems, encoding and transcoding software, streaming servers, and user interface design tools. Pay-TV refers to traditional cable and satellite television services offered by providers through subscription-based models. While these services are distinct from OTT platforms, they may incorporate VoD features to offer on-demand content alongside scheduled programming. Internet Protocol Television (IPTV) delivers television content over internet protocol networks, providing subscribers with access to live TV channels, VoD libraries, and interactive features. IPTV services are typically offered by telecommunications providers and deliver content via broadband connections.

OTT services deliver video content directly to viewers over the internet, bypassing traditional distribution channels like cable or satellite television. OTT platforms offer a wide range of on-demand content, including movies, TV shows, and original programming, accessible on various devices without the need for a cable subscription. The Services segment includes a range of support services associated with VoD operations, such as content delivery networks (CDNs), content licensing and acquisition, digital rights management (DRM), and customer support. These services are essential for ensuring the efficient delivery, security, and monetization of VoD content.

Global Video on Demand (VoD) Market, By Monetization Model

The Global Video on Demand (VoD) Market has been segmented by Monetization Model into Transaction-Based, Subscription-Based, Advertising-Based and Others.

Transaction-Based Model involves users making one-time payments to access specific content on a pay-per-view basis. Users pay for individual titles or rentals, allowing them to watch content for a limited duration. Subscription-Based Model users pay recurring fees, typically on a monthly or yearly basis, to access a library of content. Popular streaming services like Netflix and Amazon Prime operate under this model, offering unlimited access to a wide range of content for a fixed subscription fee.

Advertising-Based Model users access content for free but are served with targeted advertisements during playback. Advertisers pay for ad placements, and revenue is generated based on ad views or clicks. This model is commonly used in free streaming platforms like YouTube and Hulu. Others category encompasses alternative monetization models that may include a combination of transactional, subscription, or advertising-based approaches. It could also include innovative revenue streams such as sponsorships, partnerships, or premium content offerings. These monetization models play a crucial role in shaping the revenue streams and business strategies of VoD platforms, catering to diverse consumer preferences and market demands.

Global Video on Demand (VoD) Market, By Industry Vertical

The Global Video on Demand (VoD) Market has been segmented by Industry Vertical into Media, Entertainment, and Gaming, Travel and Hospitality, Education and Others.

Media, Entertainment, and Gaming represents a significant portion of the VoD market, driven by the demand for streaming services for movies, TV shows, and gaming content. Providers in this vertical offer a wide range of content to cater to diverse audience preferences, contributing significantly to the growth of the VoD market. The Travel and Hospitality sector is increasingly adopting VoD solutions for various purposes, including offering virtual tours, destination guides, and in-room entertainment for hotel guests. VoD platforms in this vertical enhance the overall guest experience and provide additional revenue streams for hospitality businesses.

VoD technology is transforming the education sector by providing flexible access to educational resources, lectures, and training materials. Educational institutions leverage VoD solutions for online learning, distance education, and professional development programs, enabling learners to access content at their convenience. The "Others" category encompasses additional industry verticals that utilize VoD solutions for various purposes, such as corporate training, internal communications, healthcare, and government services. VoD technology offers versatile applications across different sectors, driving its adoption and contributing to the overall growth of the market.

Global Video on Demand (VoD) Market, By Geography

In this report, the Global Video on Demand (VoD) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Video on Demand (VoD) Market Share (%), by Geographical Region, 2023

North America leads the Video on Demand (VoD) market, with the US holding the largest market share. Subscription-based streaming services like Netflix, Amazon Prime Video, and Hulu dominate, offering diverse content on-demand without traditional broadcast constraints. This shift has led to a decline in cable TV subscriptions, transforming entertainment consumption patterns in the US.

China presents significant growth opportunities, with an incremental opportunity during the forecast period. However, challenges persist due to internet bandwidth limitations, affecting video streaming experiences and download speeds. In Southeast Asia, countries face varying average connection speeds, impacting VoD accessibility. Some providers offer VoD services via cable or satellite TV platforms due to the lack of high-speed internet infrastructure.

India emerges as a promising market for VoD services, driven by the rapid growth of smartphone sales and improved internet connectivity. The country's OTT market is expanding, fueled by stronger internet penetration and the presence of global and regional service providers. With rising smartphone sales, India offers lucrative opportunities for VoD providers looking to capitalize on the growing demand for digital content.

This report provides an in depth analysis of various factors that impact the dynamics of Global Video on Demand (VoD) Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Increasing internet penetration
• Developments in Digital Video Landscape
• Surge in Mobile Based Internet Users
• Rising Demand for video content across industries - The Video on Demand (VoD) market is thriving due to growing demand for video content across various sectors. Digital platforms and technological advancements are driving this trend, making VoD services essential for entertainment and information sharing. The surge in demand extends beyond traditional media to education, corporate, and healthcare sectors.
  
  Industries recognize video content's potential for communication, training, and customer engagement, leading to increased demand for VoD services. This shift transforms information and entertainment delivery, emphasizing accessibility and convenience. The rising demand for video content drives the growth of the VoD market, making it a key player in modern communication and content consumption.

Restraints

• Internet connectivity issues in certain regions
• Bandwidth limitations
• Growing Threat of Video Content Piracy - Video on Demand (VoD) faces a significant challenge due to growing concerns over video content privacy. As on-demand video consumption rises, so do worries about the security of user data. Users share sensitive information with platforms, raising the risk of unauthorized access, data breaches, and misuse.
  
  Privacy violations, unauthorized data sharing, and potential exploitation for targeted advertising have alarmed consumers. Regulations like GDPR emphasize the need for robust security measures, adding complexity to the user experience. Addressing these privacy concerns is crucial for VoD's growth, balancing personalized content with stringent data protection to build and maintain user trust.

Opportunities

• Use advanced technology
• Explore new revenue models
• Online education enhances learning experience - The video on demand market sees promising opportunities in online education and e-learning, offering enhanced learning experiences. As schools and businesses embrace digital learning, VoD platforms deliver engaging educational content conveniently. VoD's flexibility allows learners to access diverse materials at their pace, catering to different schedules.
  
  Dynamic features like pause and rewind personalize learning, while interactive elements boost engagement. VoD's global reach breaks geographical barriers, providing access to education worldwide. Collaboration with academic institutions and e-learning platforms enriches the educational landscape, driving VoD market growth and transforming digital learning experiences.

Key players in Global Video on Demand (VoD) Market include

• Amazon.com Inc. (Amazon Prime Video)
• Netflix Inc.
• Apple Inc.
• Zee Entertainment Enterprises Ltd (Zee5)
• Hulu LLC
• The Carlyle Group
• AT&T, Inc.
• Envision
• DistroTV

In July 2021, The Carlyle Group acquired LiveU, a live video streaming company, for approximately USD 400 million. This acquisition bolsters the capabilities in video transmission and streaming services.

In May 2021, AT&T, Inc. inked a deal to merge its content unit WarnerMedia LLC with Discovery, Inc. This union brings together AT&T's properties like HBO, CNN, and Warner Bros. with Discovery Inc.'s portfolio, which includes channels such as TLC, Animal Planet, and the Discovery Channel.