The Global Market for Video On Demand (VOD) is Projected to Reach US$90.8 Billion by 2020

Era of Instant Gratification & On-Demand Disruption Fuels Business Opportunities for Video On Demand, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Video On Demand (VOD) market. The global market for Video On Demand (VOD) is projected to reach US$90.8 billion by 2020, driven by the quiet revolution of mobile technology and the evolution of life on demand as the new way of living.

Digitalization of modern life has hardwired consumers to want things instantly, pushing the world into the era of “instant gratification”. Life on demand is the new way of living. Defined as the need to experience fulfillment without delay, instant gratification is being spurred on by the proliferation of connected mobile devices and the ensuing ease in information exchange. Ubiquitous spread of mobile devices and anytime anywhere access to the Internet, have enabled consumers to be always plugged-in with the digital world, thus reducing the need for waiting. Digital technologies powered by the cloud and the Internet are liberating consumers and driving the on-demand era by offering convenience, speed and instant gratification. The growing culture of impatience is resulting in consumers demanding fast, simple, and efficient experiences of consumerism. This need for instant gratification is evolving into a powerful force in the business and marketing world, with retailers and manufacturers sensing massive opportunity to make profits from consumer impatience. Instant delivery of services and products is now a key differentiating factor for companies operating in the now less tolerant consumer markets.

The e-Commerce industry, for instance, is migrating into the same day delivery of products and services. The entertainment/broadcasting industry is also following suit with on-demand services like Video-On-Demand (VOD). Defined as a service that allows immediate downloading and viewing of videos/movies/TV shows either in real-time or for future viewing, VOD is rising in popularity. VOD ensures that the consumers’ favorite movies and shows are always in stock and waiting.  Key benefits of on-demand entertainment spurring its popularity include wide variety of choice, control over viewing time, unrivalled flexibility in the manner of consumption, easy access on multiple devices and legality associated with transactional VOD as against pirated downloads. For TV service providers, VOD provides an opportunity to generate additional income by selling premium TV packages and pay per view content. Revenue generation opportunities are also on offer for TV networks, as they can provide premium access to TV content on a pay-per-view basis, especially for missed episodes and yet-to-be broadcast series/episodes. For broadcast networks, video on demand is a new avenue of revenue generation.

Major factors feeding consumer appetite for VOD include changing video consumption/viewing patterns; rising prominence of multi-screen viewing especially on smartphones and tablets; increasing Internet speeds supported by 4G & LTE deployment; rise in binge watching; launch of new streaming devices; development of thousands of hours of premium video content; and emerging opportunities in non-entertainment sectors.

As stated by the new market research report on Video On Demand (VOD), the United States represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 31.1% over the analysis period, led by factors such as continuous advancements in Internet technology and the ensuing transition from conventional linear to non-linear TV viewing; continuous rise in the adoption of over-the-top (OTT) video; and increasing proliferation of connected devices such as smartphones, tablets and video game consoles.   

Major players in the market include Amazon Inc., Apple Inc., CinemaNow, Comcast Corporation, Crackle, DirecTV LLC, Dish TV, Google Inc., Hulu LLC, Indieflix Inc., Netflix Inc., Sky plc, SnagFilms Inc., TalkTalk TV, Time Warner Inc., Verizon Communications Inc., Virgin Media plc, and Vudu Inc., among others.

The research report titled “Video On Demand (VOD): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America) and Rest of World.

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