Increasing Internet Penetration in Emerging Nations to Enable Growth in Global Video on Demand Market

In 2018 Netflix collaborated with Tata Sky (a DTH satellite provider in India), giving the Tata Sky subscribers’ access to receive international content on demand. This has increased the demand for Video On Demand services in India. The global demand for video on demand is likely to increase in response to the increasing penetration of the Internet around the world. According to a report published by Fortune Business Insights, titled “Video On Demand Market: Global Market Analysis, Insights and Forecast, 2018-2025” the global video on demand market was valued at US$ 43.9 Bn in 2017, and is expected to expand at a CAGR of 9% and reach US$ 87.1 Bn by the end of 2025. The video-on-demand adoption process is very simple. An end-user needs to choose a service provider based on the subscription plans offered and certain other factors. Some of the key service providers operating in the global video on demand market are Amazon.com Inc., Hulu LLC, Verizon Communication LLC, Apple Inc., Netflix Inc., Telefonaktiebolaget LM Ericsson (Ericsson Television), YouTube, Comcast Corp, Hotstar, and Canalplay.

In terms of application, TV entertainment held the highest market share in the global video on demand market and is expected to emerge as the dominant segment even during the forecast period. Besides Tv entertainment, the sports and movie segment has witnessed high demand and the segment is expected to grow at a good pace as users prefer to watch sports events and movies through video-on-demand streaming.

Improving Network Infrastructure to Facilitate Rapid Adoption of Videon on Demand

“Initiative by key market players to facilitate smartphone penetration and high awareness about Internets’s advantage among undeveloped and developing nations are likely to increase the global demand for video on demand”, said a lead analyst at Fortune Business Insights.

The rapid adoption of smartphones integrated with advent technology and constant development in network infrastructure are expected to facilitate the adoption of high-speed internet. These are a few factors anticipated to push the growth rate of the global video on demand market during the forecast period 2018-2025. Additionally, high demand from consumers for instant satisfaction and consumer impatience are some of the major factors expected to drive the global video-on-demand market.

On the contrary, high costs associated with subscription plans, slow data speed, and zero presence of the Internet in several areas of Africa and Asia Pacific are some of the factors that may hinder the growth in the global video on demand market during the forecast period.

Collaboration Among key Content Producers and Video on Demand Service Providers to Propel the Demand for Video on Demand

North America, was the highest shareholder in the global video on demand market in 2018 owing to the high presence of video-on-demand service providers and high adoption of video-on-demand services in the region. Moreover, a collaboration of key content producers with video-on-demand service providers to facilitate the production of quality and new content has led to the rapid adoption of video-on-demand services in the region. The video-on-demand market in the Asia Pacific is also expected to witness upward growth due to the increasing consumption of pay-per-view movies and programs. The Asia Pacific market for video on demand is anticipated to rise at the highest CAGR among all regions owing to the increasing penetration of the Internet and prliferation of smart devices such as phones, TV, video games, and others.

Fortune Business Insight’s report also provides an insightful overview of opportunities, strategies used by the leading organization in the market, and the potential areas of development.

The global video on demand market can be segmented into the following categories: