Global Video On Demand (VoD) market generated a revenue of US$ 215.71 billion in 2022 and is estimated to reach a valuation of US$ 618.54 billion by 2030 at a CAGR of 14.07% during the forecast period, 2023–2030.
The intense competition among online video streaming services is driven by a desire to maximize client engagement. Global VOD platforms are expanding their video libraries with new genres, playlists, live streaming services, and other features to meet the growing demand for streaming content. However, this expansion has also led to an increase in streaming piracy as pirates steal user privileges and distribute content unlawfully across various websites. To combat this, many streaming sites have adopted Multi-DRM, a state-of-the-art security measure, in 2022 to prevent unauthorized access to streaming content.
This digital rights management function employs various cutting-edge technologies such as end-to-end streaming security, encryption techniques, and access controls. Despite these challenges, VOD platforms remain the preferred destination for entertainment as they are user-friendly and offer a wide range of customizable streaming services and international customer support.
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Key Dynamics of Video On Demand (VoD) Market
Drivers
Increasing Popularity of OTT Platforms
The number of OTT services streaming audio and video content has seen a significant increase as more and more users turn to these platforms. The top OTT video platform providers offer unique, high-quality content that caters to a diverse range of consumer tastes. The film industry is also expected to see a rise in OTT adoption, as it presents a new revenue stream model in the entertainment sector. Through these massive video streaming platforms, movies and TV series are now able to reach millions of households and entertain viewers. Countries such as Indonesia, Philippines, and Australia have also seen a recent surge in the OTT streaming business.
Video sharing is currently one of the most popular forms of entertainment, enjoyed by millions of viewers worldwide. The appeal of video sharing lies in its accessibility, as it is not restricted to any one streaming platform or device. OTT material is also easily consumable, thanks to its adaptable compatibility with a wide range of devices, such as smartphones, PlayStation 4, Firestick, smart TVs, computers, and Amazon Fire TVs.
Restraint
Concern Regarding the Piracy of Video Content
The video on demand market has experienced significant growth in recent years, but this growth has also led to an increase in video content piracy. This can have a detrimental effect on the global video on demand market. Producers, distributors, content creators, platforms, and other individuals in the industry have faced significant damages due to digital piracy. This has negatively impacted the sale of VOD rights, resulting in lost revenue for platforms and decreased content quality. Furthermore, the production process for content creators is also negatively affected. Additionally, piracy of video content poses security risks for users, who may access pirated movies or shows through piracy websites or torrents, which may contain malware, viruses, and Trojans. To protect the industry and users, it is important to prevent video content piracy.
Trend
Increasing Use of 5G Network Services
The widespread adoption of 5G network service is having a significant impact on the video on demand market. The ultra-low latency and high-speed capabilities of 5G networks enable mobile device users and content creators to stream and view 4K videos with ease, resulting in increased use of smartphones. Additionally, 5G technology is beneficial for over-the-top (OTT) platforms such as Netflix, Hulu, and Disney Plus Hotstar, as it allows for faster video download and upload, and higher quality video and audio streaming without buffering. As a result, the popularity of OTT platforms is expected to continue to grow among users worldwide.
However, it's worth noting that it may take some time for service providers to fully implement and take advantage of 5G technology, and the impact of 5G on the video on demand market is projected to be high in the long-term.
Segmental Analysis
Service Type
The over-the-top (OTT) category in the subscription service segment is currently leading the market share. OTT solutions allow customers to watch TV shows and movies online without the need for traditional Pay-TV subscriptions or cable. This trend is expected to continue to grow significantly over the forecast period, driven by increasing demand for business process automation and the wide availability of high-speed internet infrastructure.
New OTT features such as hybrid monetization strategies, digital original content, and increased competition leading to content fragmentation are also contributing to the segment's growth. Additionally, there is a rising demand for Pay-TV services in countries such as China, Mexico, India, and Brazil, but as the cost of programming for Pay-TV and IPTV services continues to rise, more customers are opting for more cost-effective OTT services.
Platform Analysis:
In 2021, the smartphones and tablet segment held the highest market share and the highest compound annual growth rate (CAGR) over the forecast period of 2022-2030 in the global video on demand market. This is primarily driven by the increasing use of smartphones and consumer preferences for the convenience and flexibility of having access to a wide range of entertainment options at any time.
The proliferation of high-speed internet connections, their increasing affordability, and rising utilization are also contributing to the expansion of the global video on demand market. Furthermore, factors such as the growth in mobile data subscriptions, the expansion of high-speed data networks, and the incorporation of advanced features in smartphones and tablets are expected to further fuel the market's growth in the coming years.
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Content Type Analysis
Over the forecast period of 2023-2030, the TV entertainment segment is expected to grow at the highest CAGR due to recent advancements in the technology. As compared to traditional television services, Internet Protocol Television (IPTV) is in higher demand due to the expanding availability of broadband internet connections. To maximize the available bandwidth and eliminate delay problems, IPTV uses a variety of servers to transmit streaming content to users.
Additionally, the expansion of this market is also being influenced by the rising demand for the OTT (Over the Top) platform. OTT video is being consumed across 50 million homes throughout the world, where it is seen at the same times of day as traditional TV. The growing need for limitless access to original, high-quality content is the primary driver of the popularity boom of OTT streaming platforms.
Revenue Model Analysis
Based on revenue model, the market is divided into transaction based (TVoD), subscription based (SVoD), advertising based (AVoD), and others. The advertising-based segment is expected to grow at the highest CAGR. Advertising video on demand is a well-liked monetization approach that uses advertisements to make money. The content can be accessed here without charge, but visitors must put up with obtrusive advertisements.
The robust revenue generation of the AVOD business model ensures a sizable viewership. Examples of AVOD monetization strategies include Daily Motion, YouTube, and other websites. Additionally, on the back of distinctive features, such as unrestricted content access, the subscription-based market category is also expected to experience significant development among various business models.
Application Analysis
Based on application, the market is segmented into media & entertainment, education and training, health, and fitness, travelling and gaming, and others. Over the forecast period, the media and entertainment segment are expected to grow at the highest CAGR. Consumers now can access media material wherever and whenever they want due to faster internet connectivity and an increase in the number of digital media-compatible devices. Moreover, the emergence of firms like Netflix, Apple TV, Amazon, and Hulu in the digital media space is posing a threat to traditional televisions, which are traditionally thought of as centres of entertainment.
Additionally, the expanding film and media industries, particularly in China, the United States, and India, are projected to present a significant development opportunity for the market's vendors. Disney and Apple both launched streaming services in 2019 to take advantage of the vast market opportunity after Netflix and Amazon.
Subscriber Type Analysis
The new form of cable TV is video-on-demand, but it's better. Many commercial companies are capitalizing on their vast libraries of on-demand video content, which includes everything from fitness training videos to educational courses and internal resources for new hires. The market for commercial video-on-demand is experiencing significant growth.
The commercial subscriber market is projected to experience the highest compound annual growth rate (CAGR) and is expected to continue expanding in the coming years. And similar to traditional television, streaming is not just for entertainment, it's also for education and personal development. People are willing to pay for content in popular categories such as education, fitness, and how-to. These niche markets are generating hundreds of millions in annual revenue growth. According to Think with Google, about six out of ten people now use digital video to acquire new skills and knowledge.
Geographical Analysis
In 2022, the video on demand market was dominated by North America, with a high market share. This is primarily due to the wide availability of video on demand service providers and the growing demand for their services. The acceptance of video on demand services is also a result of the increased production of entertainment, sports, and TV commercial content, as well as collaboration between content creators and on-demand service providers in the region.
The market in the Asia Pacific region is projected to experience significant growth with the highest compound annual growth rate (CAGR) due to the increasing consumption of pay-per-view programs and movies. The monthly usage of mobile internet is higher in countries like China and India. To tap into this untapped market potential, key players are implementing innovative strategies. For instance, in 2019, Netflix announced a mobile-only service for Indian smartphone users to provide a personalized experience. Additionally, due to the region's rapidly growing broadband internet population, Southeast Asian operators have expanded their revenue options by offering video streaming multi-channel packages alongside fixed-mobile bundles. These actions are driving the growth of the Asia Pacific market for video on demand.
Top Players in Video On Demand (VoD) Market
Netflix Inc., Amazon Inc., Alphabet Inc. (Youtube), Warner Bros. Discovery, Inc., (HBO) and The Walt Disney Company (Hulu), among others in the global Video On Demand (VoD) market.
In 2022, the global Video On Demand (VoD) market was dominated by the top 5 players, who held a market share of around 50%. As a result, the market is expected to exhibit oligopolistic competition. A number of companies operate in the global Video On Demand market, offering a diverse range of products and services. Through in-depth analysis, it has been observed that major companies in the market have adopted various competitive strategies, such as mergers and acquisitions, to gain a stronger foothold in the expanding market. Leading businesses are leveraging these strategies to expand their global reach and capture a larger share of the developing market.
List of Key Companies Profiled:
Key Developments:
Segmental Overview
By Service Type
By Platform
By Content Type
By Revenue Model
By Application
By Subscriber Type
By Region
| Report Attribute | Details |
|---|---|
| Market Size Value in 2022 | US$ 215.71 Billion |
| Expected Revenue in 2030 | US$ 618.54 Billion |
| Historic Data | 2018-2021 |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Unit | Value (USD Bn) |
| CAGR | 14.07% (2023-2030) |
| Segments covered | By Service Type, By Platform, By Content Type, By Revenue Model, By Application, By Subscriber Type, By Region |
| Key Companies | Alphabet Inc. (Youtube), Amazon Inc., Apple Inc., Chicken Soup for the Soul Entertainment, Inc. (Crackle Inc.), Comcast Corporation, DirecTV LLC, Dish TV, iNDIEFLIX Group Inc., berty Global plc, trixStream Technologies Inc., tflix Inc., lkTalk Telecom Group Limited, e Walt Disney Company (Hulu), rizon Communications Inc., rner Bros. Discovery, Inc., (HBO), Other Prominent Players |
| Customization Scope | Get your customized report as per your preference. Ask for customization |
The global Video on Demand (VoD) market size was US$ 215.71 billion in 2022.
The global Video On Demand (VoD) Market is studied from 2017-2030.
Yes, the global Video on Demand (VoD) Market report includes COVID-19 impact analysis.
The global Video on Demand (VoD) market is projected to grow at a CAGR of 14.07% during the forecast period 2023-2030 and is expected to reach a value of USD 618.54 billion by the end of 2030.
Factor such as increasing popularity of OTT platforms and increasing adoption of smart devices are driving the growth of the global Video On Demand (VoD) market.
The smartphone and tablets segment holds highest CAGR in the global Video On Demand (VoD) market during the forecast period.
Asia-Pacific region is growing with the highest CAGR during the forecast period.
Concern regarding the piracy of video content is a major limiting factor for the global Video On Demand (VoD) market growth.
US holds the major share in term of revenue in the North America Video On Demand (VoD) market.
Technological advancements in video streaming provide a lucrative growth opportunity in the global Video On Demand (VoD) market.
Service type, platform, content type, revenue model, application, subscriber type, and region are the different segments in the global Video On Demand (VoD) market.
Alphabet Inc., Amazon Inc., Apple Inc., Chicken Soup for the Soul Entertainment, Inc. (Crackle Inc.), Comcast Corporation, DirecTV LLC, Dish TV, iNDIEFLIX Group Inc., Liberty Global plc, MatrixStream Technologies Inc., Netflix Inc., among others.
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