The global sales of video on demand service is projected to be worth USD 171.4 billion in 2024 and expected to reach a value of USD 621.9 billion by 2034. Sales are estimated to rise at a CAGR of 13.7% over the forecast period between 2024 and 2034. The income created by video on demand service in 2023 was USD 154.0 billion. The industry is projected to register a Y-o-Y growth of 11.3% in 2024.
Video on Demand services allows users to watch or download content such as web series, movies, or documentaries at their convenience. In traditional broadcasting, the broadcast schedule restricts viewer to watch their show at any time. However, VoD services enables users to watch their favorite show at any time from any devices, thereby supporting the video on demand service market growth.
VoD services are mainly operated through internet which permits users to stream the content on their device. The users can also view the content offline by downloading the content over the internet. Such an associated flexibilities is driving the video on demand service market growth remarkably across the globe.
As the internet speeds have increased more users are preferring VoD for entertainment. Furthermore, customized pack such as different packs for TVs, smartphones by VoD players permits user to invest as per their convenience. This has also reshaped the traditional television and film industries forcing them to expand their presence in Over-the-top (OTT) industry.
Global Video on Demand Service Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 154.0 billion |
| Estimated Size, 2024 | USD 171.4 billion |
| Projected Size, 2034 | USD 621.9 billion |
| Value-based CAGR (2024 to 2034) | 13.7% |
Notable internet penetration across the globe is creating positive outlook for video on demand service market. As per Our World in Data, in 2223, around 63% of world’s total population used internet. As people are increasing their online presence, the consumption of digital content is also increased.
The widespread availability of broadband and mobile internet has made easier to consumers to watch video content. This convenience is shifting the consumer focus away from traditional television and toward on-demand services. This can be attributed to VoD services ability to allow user to control what and when to watch at reasonable rates.
Moreover, high speed internet has also enabled the reducing the buffering times and hence providing better streaming quality. In Vod, the high-definition (HD) and ultra-high-definition (UHD) content can be watch seamlessly. Expansion of internet infrastructure in rural and remote areas has creating favorable environment for video on demand service industry.
With the increase in this area connections, subscriber base expansion became substantial in recent years. Additionally, integration of smart devices has initiated the content consumption across multiple platforms and devices in real time.
The companies operating in the market are taking various initiatives to enhance their user experience and improve their brand recognition. They are offering personalized recommendation and targeted ads to that enhances the appeal for VoD services. This improvement in user experiences has fuel the growth of video on demand service market notably.
The below table presents the anticipated CAGR for the global video on demand service market over several semi-annual periods spanning from 2024 to 2034. This assessment outlines changes in the video on demand service industry and identify revenue trends, offering key decision makers an understanding about market performance throughout the year.
H1 symbolizes first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half (H1) of the year from 2023 to 2033, the business is expected to grow at a CAGR of 13.4%, followed by an increased growth rate of 14.0% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 13.4% (2023 to 2033) |
| H2, 2023 | 14.0% (2023 to 2033) |
| H1, 2024 | 13.1% (2024 to 2034) |
| H2, 2024 | 14.2% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 13.1% in the first half and remain higher at 14.2% in the second half. In the first half (H1) the market witnessed a decrease of 30 BPS while in the second half (H2), the market witnessed an increase of 20 BPS.
Adoption of cloud-based VoD solutions is an Escalating Trend in Video on Demand Service Market
The market for video on demand services is expected to grow because of the emergence of cloud-based VoD services. These services have the capacity to provide scalability and flexibility, which are necessary for flawless streaming services.
VoD service companies can easily grow their business without having to make large hardware investments due to cloud technology. They can stay ahead in this competitive era and fulfill the changing expectations of the market through these. When there is an unexpected spike in user activity, scalability is important. Cloud-based solutions guarantee consistent, high-quality streaming experiences, across the globe.
Additionally, cloud-based VoD platforms enable businesses to swiftly upgrade systems and add new features whenever it suits them. They are able to remain ahead of market trends as a result. Businesses can use creative content distribution techniques and use artificial intelligence to offer personalized content suggestions by utilising cloud infrastructure.
Cloud-based video on demand (VoD) services enable the efficient management of resource consumption and the delivery of an enhanced user experience at a lower cost. This aids the business in maintaining its prominent position in the rapidly evolving digital entertainment sector. The global market for video on demand services is growing as a result of this trend.
Surge in Mobile Device Usage Enabling On-the-go Streaming is fueling the Market Growth
The surge in mobile device usage has revolutionized media consumption. This shift has enabled on-the-go streaming, transforming the video-on-demand market. Content producers now prioritize optimizing platforms for mobile interfaces. The viewers can access the huge collection of content through mobile devices.
The remarkable use of tablets and smartphones has changed the way for media consumption. With the developments in wireless technology, people can view their favorite movies, shows and live events from anywhere. This has removed the traditional limitations of time and place, thereby supporting the growth of video on demand service market.
As a result, VOD service memberships have significantly increased with growing need for accessible and flexible entertainment. In order to maintain the viability and competitiveness of the video on demand business, content producers and distributors are encouraged to provide superior, mobile-optimized content that meets the varied interests of a worldwide audience.
Because of this, it's expected that the VOD market will develop further, using modern technologies like virtual and augmented reality to improve user experience even more. The rise in mobile streaming is driving a more comprehensive digital revolution that is altering 21st-century user engagement and content distribution.
Exploring Ad-supported Revenue Models for Wider Reach and Monetization is Creating Ample Opportunities for Video on Demand Service Market
By providing users low-cost or free access to content, ad-supported revenue models in the video on demand market offer an effective approach to monetization and may help businesses reach a larger audience. By including advertisements into the viewing experience, which must be customized to the viewer's tastes and viewing patterns, this model can drive the business growth.
The key to this model's success is striking a careful balance between the frequency of advertisements and the accessibility of the material, such that the latter is profitable for the former without being obtrusive.
Novel techniques include personalized advertising, which greatly increases viewer engagement and ad effectiveness by utilizing analytics of user behavior. VoD services can offer tailored ad experiences that are less intrusive and more relevant by evaluating viewer data. This boosts the value proposition for advertisers trying to reach particular groups in addition to improving the user experience.
In addition, the incorporation of interactive ad elements, such surveys or the ability to skip commercials, keeps users engaged while giving service providers insightful feedback. The information gathered from these exchanges will be crucial in enhancing the overall quality of the service and enhancing ad targeting tactics.
VoD providers may efficiently monetize their platforms and broaden their reach through the use of ad-supported revenue methods. VoD services may build a long-lasting ecosystem that benefits consumers, content producers, and marketers by emphasizing user experience, using data analytics for targeted advertising, and keeping a large content collection.
Concerns Regarding the Privacy of Video Content may affect Video on Demand Service Market Growth in the Projected Timeframe
One major barrier to the growth of the video on demand services market is the growing worries about the privacy of video content. Customers are showing increased reluctance to sign up for or use VoD services that might not ensure the privacy of their watching preferences and choices as they become more aware of data breaches and unlawful access to personal information.
Video on demand platforms gather a great deal of data, which contributes to privacy concerns. This data is collected not just for billing and service delivery purposes but also for content suggestion and promotion.
Moreover, several global and national regulatory firms have prepared strict rules related to managing personal info. This comprises several laws, including EU's the General Data Protection Regulation (GDPR) and USA the California Consumer Privacy Act (CCPA). Video on demand service firms are required to follow these rules.
They need to make major investments in data security infrastructure and procedures to protect sensitive data. In the digital age, losing the trust of consumers is crucial, and breaking such restrictions can result in heavy fines.
As VoD services become more popular, privacy concerns are starting to pose a real risk to market growth. Prioritizing data privacy and transparency is crucial for service providers to relieve concerns and guarantee the VoD market's continued growth. Future legislative developments will be influenced by the way the industry responds to these difficulties, which will also impact customer attitudes.
The global video on demand service market registered a CAGR of 10.7% during the historic period between 2019 and 2023. The growth of video on demand service industry was progressive as it reached a value of USD 154.0 billion in 2023 from USD 102.5 billion in 2019.
The video on demand service market witnessed high demand from 2019 to 2023. The growth was driven by technology developments, remarkable expansion of high-speed internet services, and changing consumer preferences towards entertainment industry.
Video on demand was already experiencing rapid growth in 2019, as increasing numbers of customers selected streaming services over traditional cable. VoD platforms' variety and ease of use, along with the rising demand for original material created by big streaming businesses, were the main drivers of this change.
The market saw notable boost fueled by the COVID-19 pandemic in early 2020. People favored video on demand services for entertainment as a result of lockdowns and social distancing measures implemented globally. This caused a sudden spike in subscriptions and watching.
This period saw a rapid increase in demand, with major platforms like Netflix, Amazon Prime Video, and Disney+ reporting record numbers of new users. In addition to speeding up the adoption of VoD services, the pandemic brought attention to how crucial digital entertainment is during a period when social interactions are constrained.
Post pandemic, market kept growing as platforms concentrated on improving personalization capabilities like AI-driven recommendations and expanding their content libraries. The heightened competition among streaming providers resulted in strategic alliances, mergers, and acquisitions.
In the global video on demand service market, Tier 1 companies hold a notable market share of 50% to 55%, making them the market leaders. These video on demand service providers have extensive global reach and customer bases across the globe.
These players may have their own data centers which assist them in optimizing the performance and protect the sensitive customer data. Key companies in the tier 1 are Netflix, Amazon, Disney, Comcast, and Paramount Global.
Tier 2 business in video on demand service market may not have the extensive customer bases as compared to tier 1 players. However, these players holds respectable market share and are known for their personalized subscriptions plans.
The tier 2 players mainly partners with cloud service and technology providers for their content management and improve user experience. Prominent companies in tier 2 contain Warner Bros Discovery, Apple, Google, Roku, and Fox Corporation.
Tier 3 businesses are small sized firms and emerging startups that may lacks the global customer network as compared to tier 1 and tier 2 players. This players are majorly operate in specific country or region and emphasize on providing local content that aligns with the local interest.
The section below covers the industry analysis for the video on demand service market for different countries. Market demand analysis on key countries in several regions of the globe, including the USA, Germany, China, India, Brazil, and UK is provided.
The United States is anticipated to remain at the forefront in North America, with a value share of 80.1% through 2034. In East Asia Pacific, South Korea is projected to witness a CAGR of 13.6% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 13.2% |
| Germany | 14.4% |
| China | 18.6% |
| India | 17.3% |
| UK | 13.2% |
North America, spearheaded by the USA which currently holds around 80.0% share of the North America video on demand service industry. USA video on demand service market is anticipated to grow at a CAGR of 13.2% throughout the forecast period.
The USA is home to around more than 65% of global video on demand service providers. This players are actively invest in R&D to improve the content delivery and user experiences to retain their high market position. Major platforms like Netflix, Amazon Prime Video, and Hulu have heavily invested in original content.
This investment drives both subscriber growth and retention. These platforms provide a extensive variety of content, like movies, TV shows, documentaries, and reality series. This diversity caters to different audience preferences. Their extensive content libraries, paired with exclusive original programming, give VoD services a strong competitive edge. This advantage sets them apart from traditional cable TV and other entertainment options.
China’s video on demand service market is poised to exhibit a CAGR of 18.6% between 2024 and 2034. Currently, it holds the significant market share in the East Asia market, and the dominance is expected to continue through the forecast period.
The rising popularity of educational and lifestyle content, like cooking shows, DIY tutorials, and online courses, aligns with China's focus on continuous learning. This content expansion attracts a wider demographic, including families, professionals, and younger audiences. These viewers seek to blend entertainment with practical knowledge.
Further, the integration of online courses into OTT platforms has been successful in China. Platforms now offer a range of courses, from language learning to personal finance, supporting the industry expansion.
India’s video on demand service market is expected to witness a CAGR of 17.3% in the forecast period and hold considerable market share in South Asia & Pacific region through 2034.
As per the Ministry of Information and Broadcasting, there are total 57 OTT platforms in India as of 2023. The remarkable penetration of smartphones has widened access to digital content, making OTT services more available to different users. Improved internet connectivity and affordable mobile data have increased daily streaming service use.
This surge in smartphone penetration has driven demand for diverse, localized content, boosting the video on demand market in India.
The section contains information about the leading segments in the industry. By revenue model, Advertising Video on Demand (AVOD) segment is estimated to grow at a CAGR of 13.5% throughout 2034. Additionally, the by content type, sports segment is projected to expand at 13.6% till 2034.
| Revenue Model | Subscription Video On Demand (SVOD) |
|---|---|
| Value Share (2024) | 57.8% |
SVOD segment is expected to acquire share of 57.8% in the market in terms of solution in 2024. SVOD models involve users paying a recurring fee for unlimited content access. They provide a steady, predictable revenue stream. This model attracts a large user base due to cost-effectiveness and extensive content offerings.
The consistent revenue from subscriptions enables platforms to invest in high-quality content and technological advancements, further fueling their growth. As a result, SVOD services lead the video on demand service market, capturing a significant share of the overall revenue.
| Content Type | Videos/Movies |
|---|---|
| Value Share (2024) | 60.6% |
The videos/movies segment is expected to capture share of 60.6% in 2024. People prefer videos and movies since they offer a wide range of choices, catering to diverse interests and preferences. Movies and videos span many genres like action, drama, comedy, and documentaries, appealing to a wide audience.
The on-demand feature makes these platforms popular, allowing users to watch their favorites whenever convenient.
Key players operating in the video on demand service market are investing in advanced technologies and also entering into partnerships. Key video on demand service providers have also been acquiring smaller players to grow their presence to further penetrate the market across multiple regions.
Recent Industry Developments in Video on Demand Service Market
In terms of revenue model, the industry is divided into Subscription Video On Demand (SVOD), Advertising Video On Demand (AVOD), Transactional Video On Demand (TVOD), and others.
In terms of platform, the industry is divided into smartphones/tablets, smart TVs, and laptops/PCs.
The content type is classified by industry as music, videos/movies, sports, and kids content.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and Middle East & Africa (MEA) have been covered in the report.
The global video on demand service industry is projected to witness CAGR of 13.7% between 2024 and 2034.
The global video on demand service industry stood at USD 154.0 billion in 2023.
The global video on demand service industry is anticipated to reach USD 621.9 billion by 2034 end.
East Asia is set to record the highest CAGR of 17.0% in the assessment period.
The key players operating in the global video on demand service industry include Netflix, Amazon, Disney, Comcast, and Paramount Global.
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