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:

• 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.
• Liberty Global plc
• MatrixStream Technologies Inc.
• Netflix Inc.
• TalkTalk Telecom Group Limited
• The Walt Disney Company (Hulu)
• Verizon Communications Inc.
• Warner Bros. Discovery, Inc., (HBO)
• Other Prominent Players

Key Developments:

• April 2022: More than 40 new titles in Hindi, Tamil, and Telugu were released by Amazon Prime Video. Additionally, Amazon introduced its transactional video-on-demand (TVOVO -0.8%D) movie rental service Prime Video Store in India. Over the next five years, Amazon Prime Video intends to treble its investment in India. On a transactional (per-movie) basis, Amazon's TVOD platform will provide early access to new Indian and foreign films, as well as a substantial library of well-liked films from around the world. The TVOD renting service will be accessible to both Prime non-subscribers and subscribers. Customers will receive early rental access to movies in all major languages, and the rental service is available through Prime Video's app and website.
• March 2022: To attain its goal of more than 230 million customers by the end of its fiscal year in 2024, The Walt Disney Company (DIS) declared that it would introduce ad-supported video on demand (AVOD). The service had 130 million contributors till December, 2021. At its launch at the end of 2022, the new AVOD service were anticipated to be more affordable than the existing one. The change would benefit all parties involved, including customers who will pay less, content producers who will expand their audience, and businesses who will increase brand recognition among AVOD users. By enabling greater access to material and monetizing it without charging the user a significant price, AVOD departs from linear TV and subscription video on demand (SVOD).

Segmental Overview

(Note*: We also provide granular level reports, made to sub-segment level or only for niche segments. Contact us, if you require more details.)

By Service Type

• Subscription Services
  • IPTV (Internet Protocol Television)
  • OTT (Over the Top)
  • Pay-TV
• Professional Services
  • Consulting
  • Training & Support
  • Managed Services

By Platform

• Laptops & Desktops
• Smartphones & Tablets
• Smart TV

By Content Type

• Sports
• Music
• TV Entertainment
• Kids
• Movies
• News
• Others

By Revenue Model

• Transaction Based (TVoD)
• Subscription Based (SVoD)
• Advertising Based (AVoD)
• Others

By Application

• Media and Entertainment
• Education and Training
• Health and Fitness
• Traveling and Gaming
• Other Applications

 By Subscriber Type

• Residential
• Commercial
  • Hotels
  • Educational Institutes
  • Hospitals
  • Transportation
  • Enterprises
  • Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of Middle East & Africa