Global Video on Demand Market Size By Solution (Pay TV, OTT Services), By Monetization Model (Subscription-based, Advertising-based), By Industry Vertical (Gaming, Education), By Geographic Scope And Forecast

Video on Demand Market Size And Forecast

Video on Demand Market size was valued at USD 51.93 Billion in 2023 and is projected to reach USD 154.72 Billion by 2031, growing at a CAGR of 16.13% from 2024 to 2031.

• The Video on Demand (VOD) refers to the distribution of video content that allows users to select and watch movies, TV shows, documentaries, or other media whenever they choose, without being constrained by traditional broadcast schedules.
• VOD services are accessible through various platforms, including smart TVs, mobile apps, streaming devices, and websites, offering both subscription-based (like Netflix and Disney+), transactional (renting or purchasing content), and ad-supported models.
• VOD services are used across households for entertainment, educational institutions for remote learning, corporate sectors for training and communication, and airlines, hotels, and travel services to enhance customer experience through personalized content.
• The popularity of VOD is driven by its convenience, flexibility, and diverse content library. It allows consumers to access content on-demand, skip advertisements, and binge-watch entire series at their convenience.
• The ability to stream content on multiple devices enhances its accessibility. With the shift toward cord-cutting and the growing demand for personalized entertainment, VOD platforms have become a preferred choice over traditional broadcasting, offering multi-language content, original shows, and localized streaming to cater to diverse audiences worldwide.

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Global Video on Demand Market Dynamics

The key market dynamics that are shaping the global video on demand market include:

Key Market Drivers

• Increased Internet Penetration: Widespread availability of high-speed internet enables seamless streaming, expanding VOD accessibility globally.
• Shift Towards Cord-Cutting: Consumers prefer VOD services over traditional cable TV, driving the market growth.
• Growing Demand for Personalized Content: According to the International Telecommunication Union (ITU), global internet penetration reached 66% in 2022, up from 54% in 2019. In developed countries, this figure is as high as 91%. VOD platforms leverage algorithms to offer tailored recommendations based on user preferences.
• Smart Device Adoption: Nielsen’s Total Audience Report shows that streaming accounted for 26% of total TV time in the United States in 2020, up from 19% in 2019. Increased use of smartphones, tablets, and smart TVs enhances VOD accessibility on the go.
• Expansion of Original Content Production: Platforms like Netflix and Amazon Prime invest heavily in exclusive, original content to attract subscribers.

Key Challenges

• Intense Competition: The market is saturated with multiple platforms, leading to price wars and content acquisition challenges.
• Piracy Issues: Unauthorized distribution of content poses revenue losses and legal risks.
• High Licensing and Production Costs: Creating or acquiring exclusive content involves a significant investment.
• Bandwidth Limitations in Developing Regions: Poor internet infrastructure affects streaming quality and user experience in certain areas.
• Subscriber Retention Issues: Increasing subscription fatigue and customer churn present challenges for platforms.

Key Trends

• Rise of Ad-Supported VOD (AVOD): Platforms offer free content with advertisements to cater to price-sensitive users.
• Integration of Artificial Intelligence: AI-driven recommendations enhance user engagement and retention.
• Localized Content Production: Platforms focus on region-specific content to expand their global user base.
• Live Streaming and Sports Broadcasting: Growing demand for live events boosts VOD services offering real-time streaming.
• Bundled Services: Platforms collaborate with telecom providers to offer bundled subscriptions, increasing market penetration.

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Global Video on Demand Market Regional Analysis

Here is a more detailed regional analysis of the global video-on-demand market:

Asia Pacific

• The Asia-Pacific region is witnessing significant growth in the Global Video-On-Demand (VOD) Market, driven by increasing internet penetration, smartphone adoption, and changing consumer viewing habits.
• In Europe, the European Audiovisual Observatory reports that the number of SVOD (Subscription Video On Demand) subscriptions in the EU grew by 45.7% between 2018 and 2019, reaching 118.1 million.
• A global survey by Statista found that 55% of respondents preferred streaming services to traditional TV in 2021, up from 39% in 2017. This shift is particularly pronounced among younger demographics, with 62% of millennials reporting that they watch more streaming content than traditional TV.
• Countries like China, India, South Korea, and Japan are leading the regional demand, thanks to their large population bases and rapidly expanding digital ecosystems.
• The proliferation of high-speed 4G and 5G networks has further enhanced streaming experiences, encouraging more consumers to adopt VOD services.
• The Asia-Pacific region is the growing preference for local and regional content, with platforms like iQIYI, Hotstar, and WeTV investing heavily in native-language programming.
• The rise of smart TVs and mobile-first viewing habits also contribute to the surge in VOD consumption, particularly among younger audiences.
• The region is witnessing a boom in ad-supported VOD (AVOD) models, catering to price-sensitive consumers who prefer free content supported by advertisements.
• Piracy remains a significant challenge in several markets, impacting revenue streams for platforms.
• Despite these challenges, strategic partnerships between telecom providers and streaming platforms have strengthened subscription growth.
• With continued investment in original content and advancements in streaming technology, the VOD market in Asia-Pacific is set to expand further in the coming years.

North America

• North America is anticipated to be the fastest-growing region in the Global Video on Demand (VOD) Market, driven by the widespread adoption of streaming services and a mature digital infrastructure.
• The Motion Picture Association reports that the number of original scripted series for online services in the US increased from 117 in 2016 to 532 in 2022, a 355% increase.
• The United States leads the market, followed by Canada, with both countries experiencing steady growth due to the increasing popularity of subscription-based platforms like Netflix, Amazon Prime Video, Disney+, and Hulu.
• The high penetration of smart devices, smart TVs, and high-speed internet further supports VOD consumption in the region.
• The North American VOD market is the shift from traditional cable TV to over-the-top (OTT) streaming platforms, offering greater flexibility and personalized content.
• Consumers are also attracted to the availability of diverse content libraries, including original series, films, and sports programming.
• Rising cord-cutting trends and on-demand access to premium content are reshaping the entertainment landscape.
• The region is also witnessing growth in transactional VOD (TVOD) and ad-supported VOD (AVOD) models, catering to different consumer segments.
• Market players face challenges such as increasing competition, rising content production costs, and subscription fatigue.
• Despite these hurdles, technological innovations and further investments in exclusive content will continue to drive the growth of the VOD market in North America.

Global Video on Demand Market: Segmentation Analysis

The Global Video on Demand Market is Segmented based on Solution, Monetization Model, Industry Vertical, and Geography.

Video on Demand Market, By Solution

• Pay TV
• OTT Services
• IPTV

Based on the Solution, the Global Video on Demand Market is segmented into Pay TV, OTT Services, and IPTV. The OTT Services segment has emerged as the dominant solution, primarily driven by the increasing shift in consumer behavior towards flexible, on-demand streaming platforms. OTT services, such as Netflix, Amazon Prime, and Disney+, provide greater content variety, convenience, and personalization without the need for traditional cable or satellite subscriptions. This trend is further accelerated by advancements in internet infrastructure, affordable subscription models, and the growing preference for mobile viewing.

Video on Demand Market, By Monetization Model

• Subscription-based
• Advertising-based

Based on the Monetization Model, the Global Video on Demand Market is divided into Subscription-based and Advertising-based models. The Subscription-based model (SVOD) dominates the market, driven by platforms such as Netflix, Amazon Prime, and Disney+, where users pay a recurring fee to access a vast content library without interruptions. This model appeals to consumers who prioritize an ad-free experience and exclusive content, including original series and movies. The flexibility to cancel or renew subscriptions further enhances its appeal, especially with the growing shift towards on-demand viewing habits.

Video on Demand Market, By Industry Vertical

• Media & Entertainment
• Gaming
• Education

Based on the Industry Vertical, the Global Video on Demand (VOD) Market is segmented into Media & Entertainment, Gaming, and Education. The Media & Entertainment segment holds a dominant share, driven by platforms like Netflix, Hulu, and Amazon Prime. These services offer a diverse library of movies, TV shows, documentaries, and live-streaming events. With the rise in smart devices and the shift towards personalized content consumption, this vertical remains the core driver of the VOD market.

Key Players

The “Global Video on Demand Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Netflix, Amazon, Google, YouTube, Apple, HBO, Cisco, Roku, IndieFlix, and Vudu.

This section offers in-depth analysis through a company overview, position analysis, the regional and industrial footprint of the company, and the ACE matrix for insightful competitive analysis. The section also provides an exhaustive analysis of the financial performances of mentioned players in the given market.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In April 2020, Synamedia announced a partnership with Google Cloud to expand its video network portfolio with a new OTT service. This collaboration enabled Synamedia to respond to customer inquiries about OTT services, increasing scalability and optimizing Synamedia’s performance by lowering operational costs.

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