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  • To Be Published : Apr 2024
  • Code : CMI1124
  • Formats :
      Excel and PDF
  • Industry : Smart Technologies

Video on Demand (VoD) is a system that permits users to select, watch, and listen to videos and audio content at their convenience with the help of Internet Protocol Television (IPTV) over broadband connection. Apple TV and Telstra T-Box are some of the most widely used video on demand services. IPTV service is responsible for converting television signals into computer data. Hence, IPTV provides information in IP format. So channels are programmed in IP format and the data is flowed to the television over a set top box or similar device that acts as a decoder. IPTV provides an extensive range of videos and accessibility to various devices, as well as enables users to control the time spent on watching videos.

Increasing adoption of digital media across the globe, attributed to the rising utilization of mobile devices and proliferation of high speed broadband connectivity, is driving growth of the video on demand market. For instance, in the U.S., digital media consumption is increased significantly due to the presence of leading digital media players such as Netflix, Hulu, Amazon, and Apple TV.

Growing adoption of mobile devices is expected to augment demand for digital media consumption, in turn driving growth of the global VOD market. According to Coherent Market Insights analysis, the global smartphone market witnessed growth of over 15% and over 2 billion mobiles were sold globally in 2016. Increasing adoption of mobile devices is consequently expected to increase the use internet access. For example, in India, the number of internet users grew by around 21% in 2016. This will in turn, provide consumers with information according to their choice, entertainment, and social activity, at any given place and time. According to Coherent Market Insights’ analysis, as of 2016, the global audio and video traffic accounted for over 80% of the global internet traffic.

Video on Demand Market Taxonomy

On the basis of solution, the global video on demand market is segmented into:

  • Pay-Tv VOD 
  • Over-The-Top (OTT) Services 
  • Internet Protocol Television (IPTV)

On the basis of application, the global video on demand market is segmented into:

  • Entertainment 
  • Education and Training 
  • Network Video Kiosks 
  • Online Commerce 
  • Digital Libraries 

On the basis of delivery technology, the global video on demand market is segmented into:

  • Transactional Video on Demand (TVOD) 
  • Subscription Video on Demand (SVOD) 
  • Near-Video on Demand (NVOD) 

On the basis of end user, the global video on demand market is segmented into:

  • Academic and Government 
  • Banking, Financial Services, and Insurance (BFSI) 
  • Consumer Goods and Retail 
  • Healthcare 
  • Manufacturing 
  • Hospitality 
  • Telecom and IT
  • Media and Entertainment 
  • Transport and Logistics 

Emerging economies are expected to offer significant potential for market growth, owing to rapid development of internet connectivity enabled infrastructure

The U.S., Western Europe, Japan, and few emerging economies such as China, are striving to develop 5G infrastructure. For instance, in June 2017, China Academy of Information and Communications Technology, forecasted the combined expenditure of the three domestic network operators to reach around 46 billion in 2023. 5G technology is expected to reach commercialization by 2022, specifically in developed economies. This is further expected to boost the existing video streaming market over the forecast period, for both, enterprise and recreational purposes.

Major players operating in the global video on demand market include Alcatel-Lucent, Fujitsu, ZTE Corporation, Ericsson, Huawei Technologies, Akamai Technologies, Inc., Avaya, Level 3 Communications, AT&T, and Cisco.

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