The global video-on-demand (VoD) market is poised for good growth in the upcoming years. It was already worth a staggering US$33.32 bn in 2015. Going forward, it is predicted to clock a strong CAGR of 9.3% from 2016 to 2024 to reach a whopping US$73.90 bn by 2024. This is because the market is win-win for all – consumers are spoilt for a choice, content producers and broadcasters find more takers for their shows, telecom and technology firms find a chance to foray into the media industry, and investors can bet big.
Growing Popularity of Customized Viewing Propels Market
Video-on-demand services allow streaming and downloading of a wide array of digital content. The growing demand for customized viewing of the digital content has fostered significant growth in the global VoD market. Growing penetration of smartphones, emergence and popularity of smart TVs, and seamless and high-speed Internet connectivity has also boosted demand. On their part, video-on-demand service providers are enticing potential subscribers with high quality videos. In addition to this, they are providing unlimited content at fixed rates or for free. Further, studios and record labels that produce content are collaborating with VoD service providers to release their contents on on-demand service platforms, resulting in more growth. Regional content made available by video-on-demand service providers is another factor that has fostered the growth of the market.
Entertainment Content Rules on the Back of Increasing Production
Various sectors, including banking, academics, government, healthcare, media, and transportation use VoD services for conference, education, research, and entertainment. Content-wise, the market can be classified into sports, education and information, entertainment, and TV commerce. Entertainment content enjoys maximum demand among those and is slated to outpace all other segments in terms of growth with a CAGR of 9.5% from 2016 to 2026. The rising production of entertainment content such as TV shows, movies, and music has led to the growth of the segment. The TV commerce segment held a share of 24.0% in the global market for video-on-demand in 2015. The sports segment too is predicted to see growing demand for on-demand services on account of premium sports events organized every now and then.
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Rising Adoption of Multiple Business Models makes North America Market Leader
North America held a dominant share of 40.0% in the global market for video on demand in 2015. Growing number of takers for multiple business models, namely subscription video on demand (SVoD), transactional video on demand (TVoD), and hybrid (SVoD + AVoD) has propelled its market to a leading position. A wide range of premium and exclusive content offered by on-demand service providers has also led to a consumption jump in the continent. Europe followed North America by accounting for a share of about 30.0% in the market in 2015. Asia Pacific, however, is expected to register a significant CAGR of 9.7% from 2016 to 2024 on account of rising investments in the development of mobile broadband and high-speed networks.