Video Streaming Software Market

KEY FACTORS SHAPING VIDEO STREAMING SOFTWARE MARKET

Impact of COVID-19 Crisis on Video Streaming Software Market

The ongoing COVID-19 pandemic has forced national governments to implement nationwide lockdowns. Citizens have been asked to stay at home until the lockdown orders are lifted by the authorities. During the first quarter of 2020, an accelerated adoption of media and gaming platforms was recorded on a global scale, as the requirement of digital entertainment rises among end users.

Video streaming service providers such as Netflix and Amazon are recording an influx of customers, as the number of COVID-19 cases surge and stringent lockdowns are implemented across worst hit nations such as the U.S., Iran, Italy, and Spain. Such lockdowns along with highly populated countries such as India and China are boosting the adoption of video streaming software and services on a global scale.

Increasing Mobile Subscriptions & Network-connected Devices Driving Market

Mobile devices such as smartphones and tablets are increasingly becoming the first go-to devices for communication and content consumption. In addition, with the rapid adoption of 4G services in developing countries, and the emergence of more advanced technologies enabling smartphone users to access the Internet more easily, mobile Internet diffusion is expected to accelerate in the coming years.

Although the prices of 4G smartphones remain moderate with increasing innovation and competition, these prices are expected to continue to fall. Therefore, increase in smartphone penetration is one of the major factors expected to drive the adoption of video content among consumers during forecast period.

Rising Demand for Original Media Content and Live Streaming

At present, the broadcasting industry is experiencing ever-increasing demand for original video content. Major competitors are spending billions on the production of original content to maintain existing audiences, as well as attract new audiences.

Hence, several broadcasters are trying to accelerate their video streaming software sales and related services by developing original content to build brand awareness. The availability and quality of premium live content on different devices is still growing, as live video streaming software for Mac, PC, and Linux is still in the nascent stage.

Users who used to watch live events and sports on traditional TV have started to shift to these platforms due to the availability of live video content as per their convenience. Moreover, the number of live sports deals are increasing due to the rising demand for video streaming platforms.

Thus, due to rising demand from the audience for original and live streaming content, the growth of the video streaming software market is expected to continue significantly during the forecast period.

North America Dominates Video Streaming Software Market

The video streaming software market in North America, especially the U.S., is dominating the global landscape. Although the growth in the total number of video streaming service-related subscriptions is slowing down in North America, the consumption time or video streaming time per user still keeps on increasing, as the availability and quality of streaming content is constantly improving. The concentration of video streaming hours in North America can be attributed to an increase in the number of traditional PayTV providers operating in the market.

Video Streaming Software Market: Structure Analysis

• Key video streaming software providers operating in the global video streaming software market include Brightcove Inc., Haivision, IBM, Kaltura Inc., Panopto, VUALTO, Ooyala, Inc., (Poly) Plantronics, Inc., Vbrick, Sonic Foundry, Kollective Technology, Inc., Cloudinary, dacast, OBS, and Wowza Media Systems, LLC, among others.
• Leading video streaming service providers include Netflix, Amazon Prime Video, Hulu Disney Plus, and YouTube TV, among others.
• Netflix Inc. crossed 2 million subscribers in France and Germany soon after its global launch in 2016. However, the company is still facing stiff competition from local pay-tv operators in the region.

Report Metrics & Details

• Base Year - 2019
• Historical Period - 2015-2019
• Forecast Period - 2020-2030
• Market Value in 2019 - US$ 4.5 Bn
• Segments Covered - Solution, Type, Vertical, and Region
• Regions Covered - North America, Latin America, Europe, East Asia, Southeast Asia & Pacific, and the Middle East & Africa
• Key Companies - Netflix, Amazon Prime Video, Hulu, Disney Plus and YouTube TV, Brightcove Inc., Haivision, IBM, Kaltura Inc., Panopto, VUALTO, Ooyala Inc., (Poly) Plantronics Inc., Vbrick, Sonic Foundry, Kollective Technology Inc., Cloudinary, dacast, OBS, and Wowza Media Systems LLC.
• Growth Drivers - 
  • High demand for live streaming and original media content
  • Upsurge in affordable video streaming subscriptions
  • Rise of AI-enabled video streaming software

Video Streaming Software Market to Cross US$ 5 Bn in 2021

Emergence of innovative Internet technologies, including high-speed broadband and onset of low-latency video streaming services are changing user expectations and paving the way for upcoming technologies. In addition, the advent of cloud-based services is encouraging live video streaming service providers to deliver on-time live streams, and thus provide quality-focused services. This disruption of digital infrastructure will have a measurable impact on the video streaming software market.

As underscored by a new FMI study, worldwide adoption of video streaming software will surpass US$ 5 Bn value in 2021.

Video-on-Demand (VoD) Services Capture 70% Revenue Share

Video-on-Demand (VoD) offers greater scale of convenience and more opportunities for creativity as compared to live streaming. Akin to conventional methods of developing and distributing content, VoD ensures greater return on investment (ROI). Around 7 out of 10 market players are investing in VoD services.

FMI finds that, this trend will follow a positive curve over the decade ahead. Under the category, subscription VoD and transactional VoD continue to remain the center of attraction in the video streaming software market.

Video Streaming Software Market Regional Analysis

North America is characterized by the strong presence of service providers - Microsoft Corporation, Amazon Web Services, Hulu, and Netflix Inc. Industries such as education, media and entertainment, and telecom, in the region, are experiencing staggering growth. Further, investment upheaval in smart classes and increasing preference for easily accessible software services are fueling the video streaming software market in North America.

Although the rise in total number of video streaming subscriptions is dropping in North America, online consumption per user continues to outperform. Asia Pacific (APAC) houses the fastest-growing broadband Internet population. Over-the-top (OTT) solutions are transforming the online consumption pattern of viewers in the region. Telecom operators in APAC are expanding monetization opportunities by providing video streaming multichannel services in tandem with fixed-mobile subscriptions. 

AI, DL, and ML Technologies - Potential Market Disruptors

Artificial Intelligence (AI), deep learning (DL), and machine learning (ML) are becoming commonplace in real-world industry use cases. Wide-scale market use case of these solutions require extensive testing, as they are critical to digital disruption in several organizations. AI, DL, and ML are executed to develop digital customer relationship management (CRM) agents and chatbots, as well as offer VR-driven shop floor demonstrations.

These technologies are rapidly making forays in the video streaming software market, especially in streaming media content and addressing copyright violation of codes. Market players must utilize these new-age solutions to outline highly effective ways to encode, distribute, and structure data, and thus simplify the digital landscape.

Video Streaming Software Market Trends

The media and entertainment vertical would be the primary end user of the video streaming software market. Rapid usage of consumer electronics such as mobile phones and tablets, attributable to increasing prevalence of digital mediums, especially social media platforms, for marketing and branding, is influencing market players to invest in this vertical.

Further, around half of the overall video streaming software market value would be realized by the media and entertainment industry. Market players are also targeting the education and healthcare verticals for relevant returns.

Key Segment

Solution

• Software
• Services

Type

• Live Video Streaming Software
• Video-on-Demand (VoD)
  • (Subscription) SVOD
  • (Transactional) TVOD
  • (Advertising) AVOD
  • Others

Vertical

• Media and Entertainment
• Education
• Healthcare
• Banking and Financial Solutions
• Travel and Tourism
• Others

Region

• North America
• Latin America
• Europe
• East Asia
• Southeast Asia and Pacific
• Middle East and Africa