The global video on demand (VoD) market is growing at a single-digit CAGR from 2014 to 2020. It is, however, set to rise in the coming years as the issues
faced by the global VoD market are gradually resolved. The CAGR could possibly enter double digits before the end of the given forecast period.
Browse the full Global Video On Demand (VoD) Market Report: http://www.mrrse.com/video-on-demand-market
The global video on demand market comprises all the products and services that allow you to watch televised programs whenever you wish, rather than wait
every week for new episodes. It allows a viewer to watch a series at his/her leisure, without missing a single episode. It also gives a viewer a greater
level of flexibility, as they can choose to pause, replay, rewind, and even schedule a program to be viewed at a preset time.
VoD is a highly interactive market that works on providing viewing benefits to customers at their ideal time. It also allows a user to download a program
to view it later. Therefore, the global VoD market essentially deals in converting a real-time viewing experience into a playback one.
Opening up a Stifled Global VoD Market
One of the greatest challenges that the global VoD market has faced is the lack of solid bandwidth. Till now, the global VoD market consistently faced the
problem of long durations required to either download or stream videos. One of the basic necessities of a VoD service to work is the availability of a
stable and fast Internet connection. With multiple users trying to view the same popular series the world over, it can get difficult for one server or
server farm to handle the load.
What many VoD service providers are doing to mitigate this issue is create geographical segmentations in the global VoD market that they can use to locally
store the videos for a finite target audience to view. This method, called “Save and Forward”, could create a stronger availability of content over the
world, allowing a faster and better viewing experience.
Another factor that could ease up the load on the global VoD market is the increasing use of fiber optics in households. The advent of FTTH services will
create a much bigger pipeline for the heavy streaming rates of high-quality videos.
Global VoD Market to Get Better Subscription Services
The global VoD market is currently dominated by pay TV services, a segment which held more than 90% of the market in 2014. The subscription services
segment is, however, expected to grow much faster – at a double-digit CAGR – within the 2014-2020 period. It could provide the boost needed for the global
VoD market to take it to a larger consumer base. Meanwhile, the market share for transactional VoD services is set to increase to 3.8% by 2020, from its
current share of 1.9%.
The key players in the global VoD market are Vibiquity Inc., British Sky Broadcasting, SeaChange International, Cisco Systems Inc., Motorola Solutions
Inc., Alcatel-Lucent, Accenture Plc., Amazon.com Inc., ZTE Corporation, and Netflix Inc. Most of the operators function in North America, which held a
third of the market in 2014, and Europe, which held 20% of the market the same year. We can therefore see the greater scope of innovation and advancements
in technology occurring here, even though other key regions such as Asia Pacific are displaying impressive growth rates.