Video on demand is an interactive TV technology that enables users to view content in real-time or download programs and view them later. VoD allows users to choose the right content and watch it at a convenient time on any device. Video-on-demand solutions allow digital video subscribers to select multimedia content of their choice from a vast content library, to watch whenever they choose for up to 24 hours. Viewers can pause, rewind, stop, and start viewing content at any time.
The global video on demand service market is expected to surpass US$ 136,000.8 Mn in terms of value by the end of 2028.
Vertical integration by social media platforms rising high-speed internet penetration is expected to boost the global video on demand service market growth over the forecast period. Ease of access to high fidelity data networks, with consistent speeds of 2–3 Mbps that enable buffer-free experience to users has led to increased access to VoD. Furthermore, the majority of companies offering internet services, including social medial platform have launched their own streaming video services. For instance, in March 2015, Twitter Acquired Live-Video Startup Periscope, which enables users to stream live video directly on their smartphones. The acquisition introduced live video streaming feature in Twitter’s portfolio, enabling it to cover news events across the globe.
Advent of third-party mobile applications providing novel VoD features can present lucrative growth opportunities in the global video on the demand service market. There has been the introduction of numerous third-party mobile applications that provide novel VoD features, owing to increase in demand for streaming video services. For instance, Meerkat (Life On Air, Inc.) allows users to broadcast live video streams via iPhone through their Twitter account. Furthermore, Pikdip (Pikdip Inc.) offers subscription-based service with a diverse range of ethnic entertainment. This is in line with increasing demand for greater diversity in the media content from consumers.
Global Video on Demand Service Market: Recent Developments
Non-skippable advertisements on VoD services offered by cable TV and satellite TV provides are expected to hamper the global video on demand service market growth over the forecast period. VoD services offered by cable TV and satellite TV providers carry non-skippable advertises that do not allow an option to avoid them. This in turn is limiting the number of users opting for cable TV and satellite platforms as compared to other streaming service platforms. Thus, there is a need for standardized dynamic VoD advertising solutions on cable TV and satellite TV platforms. As the majority of end users are active on pay-TV platforms, non-skippable ads are hampering the adoption of VoD services to a large extent.
Global Video on Demand Service Market - Impact of Coronavirus (Covid-19) Pandemic
The outbreak of COVID-19 pandemic has impacted many industries and market. Following the pandemic, many countries decided to close their borders and shut down international travel temporarily. With adoption of nationwide lockdown policies, many companies decided to adopt work from home policy. As a result of this, the adoption of video on demand services increased significantly. With people confined at their homes, VoD services such as Netflix, Disney+, Amazon Prime Video, Hulu, and more become a primary source of entertainment. Furthermore, growing adoption of smartphones, tablets, and laptops coupled with availability of high-speed internet at competitive prices has increased the adoption of VoD services across the globe.
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Brazil, Mexico, and Argentina have been recorded to account for the highest amount of mobile data traffic among all other emerging markets, in turn creating potential opportunities for VoD service providers such as Netflix and YouTube to maintain a competitive edge in these regions. According to Coherent Market Insights’ analysis, Latin America accounted for a total of 8.9 million 4G connections, with a vast majority being in Brazil, Mexico, and Argentina. Furthermore, according to the Cisco Visual Networking Index white papers, 2015, mobile data traffic in the region was recorded 200,900 TBs in 2014.
Europe has witnessed increasing consumer interest in the adoption of streaming media services. This is exemplified by declining sales of leading chains (from 2012 to 2015) such as the HMV Group (U.K.), Virgin Megastores (France), and Blockbuster rental stores (Blockbuster LLC) in several European countries. Even though the e-Commerce market has gained traction in the recent past, online sales of DVDs and BDs failed to compensate for this revenue loss. This clearly signifies the preference of customers towards online streaming and VoD services.
Key players operating in the global video on demand service market are Cisco Systems Inc., StreamingMedia.com, SeaChange International Inc., Amazon Video, HBO, Pace Limited, Hulu, Massive Interactive, Inc., Apple Inc., Espial Group, and Netflix Inc.
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