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Video On Demand (VoD) Market: Global Industry Analysis and Opportunity Assessment 2014 – 2020

Preview Analysis

Video on demand is an advancement in video technology that allows TV programs, news, movies and sports event to be delivered directly to a set-top box, PC, IPTV, mobile phones from satellite TV, internet, cable companies and as well as telephone, when customer requests it. Video-on-demand solutions allow digital video subscribers to select programming of their choice from a library of content to watch whenever they want for up to 24 hours with the flexibility to pause, rewind, stop, and start at any time. Video on demand is classified into pay TV services, transactional based services and subscription based services.

Video on Demand: Market Value and Forecast

The global video on demand market is anticipated to expand at a single-digit CAGR during the forecast period. Growth of the global video on demand service market is mainly driven by increasing spending on video services, growing household expenditure, proliferation of connected devices and increasing internet users. Moreover, the trend that follows with the growth of video on demand service market is adoption of new technologies to enhance customer video viewing experience.

Segmentation by Services

The global video on demand services can be segmented into pay TV, transactional based and subscription based services. Out of these segments, pay TV services accounted for over 90% of the global video on demand service market share in 2014. In contrast, the subscription based video on demand service market is expected to expand at a double-digit CAGR from 2014 to 2020. The contribution of the transactional based video on demand service market to the overall global video on demand service market is likely to increase from 1.9% to 3.8% by 2020, witnessing an increase of 190 BPS.

Segmentation by Pay TV Services

The global pay TV services segment can be further sub-segmented into satellite TV, analog cable TV, digital cable TV and internet protocol (IP) TV. Out of all these sub-segments, satellite TV dominated the global pay TV service segment in 2014; however, it is expected to lose its dominance in the sub segment market by 2020. In contrast, IP TV is anticipated to be one of the fastest growing market in the pay TV segment market during the forecasted period, followed by digital cable TV.According to FMI, digital cable TV sub segment is expected to witness a 2.3 times growth over the forecasted period when compared to 2013.

Video on Demand Market: Key Regions

The global video on demand market has been sub-segmented into seven major regions which include North America, Western Europe, Asia-Pacific Excluding Japan (APEJ), Japan, Eastern Europe, Latin America and Middle East & Africa. Of all the regions, North America dominated the market with over 1/3rd of overall video on demand market share of in 2014. Western Europe ranked second with more than 20% market share in 2014, followed by APEJ. In addition, Asia-Pacific is anticipated to become the fastest growing region in video on demand market.

Video on Demand Market: Key Players

Some of the key players identified in global video on demand market are Netflix Inc., Inc., ZTE Corporation, Accenture plc., Alcatel- Lucent, Motorola Solutions Inc., Cisco Systems Inc., SeaChange International, British Sky Broadcasting and Vibiquity Inc. Key service players in the global video on demand service market continue to expand their global presence by expanding into emerging markets. Additionally, major participants such as Netflix and Amazon have been focusing on partnerships in order to their enhance customer base and provide customer with latest video contents. Solution providers focus primarily on innovation and acquisition so as to broaden their video on demand solution offerings and gain a sustainable competitive advantage.

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