Video on Demand Market to Exhibit 9% CAGR, Rapid Adoption of Smart Devices to Propel Demand, says Fortune Business Insights

May 6, 2019

Leading players in global video on demand market Include Netflix, Amazon PrimeHulu LLC, Verizon Communication LLC, Apple Inc., Telefonaktiebolaget LM Ericsson (Ericsson Television), YouTube, Comcast Corp, Hotstar and Canalplay.

Pune, India - May 6, 2019 /MarketersMedia/ —

The Video on Demand Market is forecast to gain from rapid penetration of the Internet in undeveloped nations. Fortune Business Insights has recently published a report, titled “Video on Demand Market Size, Share and Global Trend by Technology (SVOD, TVOD, AVOD), Content Type (Sports, Music, TV Entertainment, Kids, Movies), and Geography Forecast till 2025,” which offers an executive-level blueprint of the market. The report has pegged the overall value of the global Video on Demand Market stood at US$ 43.9 Bn in 2017. However, progressing at a CAGR of 9% the market is expected to reach a valuation of US$ 87.1 Bn by the end of 2025. Additionally, the Video on Demand Market in North America was worth US$ 16.2 Bn in 2017. North America also held the highest share in the global Video on Demand Market in 2018 and is forecast to witness impressive growth through the course of the forecast period 2018-2025. The increasing demand for video on demand services in the region, coupled with the presence of a high number of service providers are expected to facilitate expansion of the market.

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Besides this, the Video on Demand Market in Asia Pacific holds a lot of potential and is projected to expand at a relatively high CAGR over the forecast period. The increasing adoption of smart TV, smartphones, and others is likely to fuel the demand for video on demand services in the region, thus aiding its expansion in Asia Pacific.

The report also classifies the global Video on Demand Market in various segments. In terms of technology, subscription video on demand (SVOD) held the highest share in the global market in 2017. The segment is expected to expand at a CAGR of 8% during the forecast period. The growth witnessed in this segment is attributable to SVOD’s distinct features such as unlimited content access, minimal or no advertisements, and others.

Netflix and Tata Sky Collaborated to Cater India Video on Demand Market

One of the key factors anticipated to drive the global Video on Demand Market is the increasing user-base of various online platforms and cheaper data plans. Additionally, collaboration among video on demand service providers is also anticipated to propel the demand in the global video on demand market. For instance, Netflix collaborated with Tata Sky (an Indian DTH service provider) to cater the market for video on demand in India. Owing to the collaboration Tata Sky subscriber can receive worldwide quality content on demand. Such collaborations are expected to bode well for the market and help video on demand service providers capitalize on untapped opportunities.

“Governments initiated awareness programs encouraging Internet penetration in undeveloped nations of Africa, Latin America, and others are likely to fuel the demand for video on demand service,” said a lead analyst at Fortune Business Insights.

The growing demand for instant satisfaction of entertainment needs among customer will act as a dominant force boosting the global video on demand market.

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However, higher data tariff prices and lack of awareness about video on demand’s existence are major factors that may hamper the growth in the global video on demand market.

Increasing Inflow of Market Players to Boost the Market

Netflix and Amazon Prime are among the leading players in global video on demand market. Besides these, other organizations operating in the global Video on Demand Market are Hulu LLC, Verizon Communication LLC, Apple Inc., Telefonaktiebolaget LM Ericsson (Ericsson Television), YouTube, Comcast Corp, Hotstar and Canalplay.

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