The global video on demand market size is projected to reach USD 159.62 billion by the end of 2027. The market was worth USD 53.96 billion in 2019 and will exhibit a CAGR of 14.8% during the forecast period, 2020-2027, according to the latest report by Fortune Business Insights.
The new report is titled “Video On Demand Market Size, Share & COVID-19 Impact Analysis, By Revenue Model (Subscription Video On Demand (SVoD), Transactional Video On Demand (TVoD), Advertisement Based Video On Demand (AVOD)), Content Type (Sports, Music, TV Entertainment, Kids, Movies, and Others), and Regional Forecast, 2020-2027”.
The increasing smartphone penetration across the world will create several opportunities for market growth. The availability of low cost cloud platforms will emerge in favor of market growth.
Video on demand services have witnessed a massive popularity in the past few years, mainly due to the increasing use of services such as Netflix and Amazon Prime. The market has derived significant growth from the presence of these companies and the ease of availability of cloud platforms has opened the doors for growth.
The increasing internet penetration in several countries across the world will bode well for the growth of the overall market in the coming years. The increasing investments in marketing and advertisements for video on demand services has given the platform for rapid market growth.
The implementation of 5G networks will act as a threshold for online services and this can altogether replace offline movie viewing in theatres. The presence of several large scale companies will have a huge impact on the growth of the market in the foreseeable future.
Highlights of the Report:
This research report divulges an in-depth study of the driving factors, restraints, and trends related to the growth of the market. In addition, this report offers a detailed evaluation of the market segments and regional developments in the market. Further, this report also incorporates a comprehensive analysis of the strategies adopted by the leading players to boost their market position.
Rise in Demand during Covid-19 Pandemic is a Result of the Measures Taken to Limit the Spread of the Disease
The recent coronavirus outbreak has had a negative impact on the growth of several business sectors across the world. With the rapid spread of the disease, governments across several countries are looking to implement strict measures with the hope of minimizing the impact of the virus. As a result, people are becoming more hesitant to go outdoors and companies are implementing work from home policies for their employees. The aforementioned factors have led to a surge in the adoption of video on demand services across the world. The factors that have contributed to the growth of the market include increasing smartphone penetration, availability of seamless internet connections, and the ease of availability of cloud platforms.
Drivers & Restraints:
Growing Internet Penetration to Enable Growth
The growing use of internet in all parts of the world has contributed massively to the global video on demand (VoD) market. The demand for high quality internet services through mobile networks or wired lines has resulted due to various online facilities and availability of streaming. The availability of wide bandwidth and fast paced internet services has led to the rising uptake of video on demand services. The adoption of multiscreen services for content streaming and an increasing uptake of smartphones will aid the growth of the global video on demand market and will boost the market in the coming years.
Increasing Number of Company Collaborations will Emerge in Favor of Market Growth
The report encompasses several factors that have contributed to the growth of the overall market in recent years. Due to the increasing popularity of video on demand services across the world, there are several entry-level as well as established players based in several countries. It is observed that online video service providers are collaborating with cloud vendors for longer duration. In September 2020, Amazon Music announced that it has partnered with Twitch. The latter is a live video streaming service that normally deals with gaming and live broadcasts. Through this collaboration, Amazon will look to incorporate Twitch’s live streaming platform into Amazon Music. Increasing number of such product innovations will have a huge impact on the growth of the overall market in the forthcoming years.
Flipkart set to Launch VoD Service in India
Walmart’s latest acquisition of Flipkart will contribute to the business expansion of the company in the coming years. Influenced by Amazon’s success in video on demand services such as Amazon Prime, Flipkart plans to launch its on video on demand services in India. The global VoD market can benefit hugely from contribution through renowned companies such as Flipkart and Amazon. Additionally, worldwide streaming websites such as Netflix will add to the growth of the global video on demand services market in the coming years.