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 Alphabet
Inc., Amazon Inc., Apple Inc., CinemaNow, Comcast Corporation, Crackle Inc., DirecTV
LLC, Dish TV, HBO, Hulu LLC, Indieflix Inc., MatrixStream Technologies Inc., Netflix
Inc., Sky plc, SnagFilms Inc., TalkTalk TV, Time Warner Inc., Verizon
Communications Inc., Virgin Media plc, Vudu Inc., YouTube LLC, 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.
Global Industry
Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA, All Rights Reserved.
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