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Video on Demand Market Size, Share & COVID-19 Impact Analysis, By Revenue Model (Subscription Video on Demand (SVoD), Transactional Video on Demand (TVoD), and Advertisement Based Video on Demand (AVoD)), By Content Type (Sports, Music, TV Entertainment, Kids, Movies, and Others) and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI100140

 

KEY MARKET INSIGHTS

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The global video on demand market size was valued at USD 69.55 billion in 2021. The market is projected to grow from USD 82.77 billion in 2022 to USD 257.59 billion by 2029, exhibiting a CAGR of 17.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with video on demand services experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a rise of 14.4% in 2020 as compared to 2019.


In the scope of the market overview, we have included VoD services offered by players such as Netflix Inc., Alphabet Inc., Hulu LLC (The Walt Disney Company), Apple, Inc., and others. These players are offering subscription-based VoD services through their platforms. For instance, Netflix Inc., offers VoD streaming services to offer a wide range of movies, TV shows, documentaries, and others. Also, several VoD platforms include YouTube Premium offered by Alphabet Inc., Amazon Prime by Amazon.com, Inc., and Apple TV+ by Apple, Inc. In addition to this, Verizon Communications Inc. provides Pay-Per-View (PPV) and Subscription or fee-based content VoD service.


Increasing adoption of mobile internet penetration and rising demand for subscription-based TV shows, movies and documentaries drives the growth of the market. According to the GSMA Intelligence Report in 2020, an estimated around 4 billion that is 51% of the global population connected to the mobile internet. It was increased by 225 million in 2020 compared to the previous year, 2019. Such an increase in mobile internet penetration drives the demand for subscription-based on-demand videos globally.


COVID-19 Impact


Rising Adoption of VoD Services owing to Lockdown in Several Countries, Aid the Market Growth


The COVID-19 pandemic has accelerated the demand for smartphones, broadband connections, internet usage, and digital platforms such as video streaming and conferencing. Also, movie theatres and shows were temporarily closed owing to government restrictions and self-imposed social separation guidelines to avoid viral infection. As a result of the pandemic problem, demand for VoD services has been increased among new and existing consumers.


Further, in the first quarter of 2021, the adoption of digital streaming platforms such as Netflix, Disney+, and Amazon Prime has increased astoundingly. This is primarily attributed to changing consumers’ viewing videos on the internet. For instance,



  • In the first quarter of 2021, Netflix Inc., reported around 13.6% increase in new memberships compared to the same period in 2020. The company’s members reached more than 200 million at the end of 2020, with 37 million signing up for the service in 2020.

  • In October 2020, Alphabet Inc.’s subsidiary Google LLC launched Google TV, including several video-on-demand streaming services, including Netflix Inc. and Walt Disney’s Disney+. Alphabet Inc. also launched an advanced Chromecast, a streaming device with remote control.


LATEST TRENDS


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Enhanced User Experience and Ease of Use is Considered as Emerging Trends


VoD offers viewers an online video library that can be accessed from any compatible device, anytime at their ease. Ease of access, integrated services, and other product offerings would help establish a favorable environment for subscription-based services. According to PwC, Consumer Intelligence Series 2021 video survey findings, the respondents enjoyed best their preferred services, "ease of use “(55%), along with "knowing they'll always be able to find something to watch “(35%).


Consumer preferences and needs change throughout time, but one constant remains the growing demand for value and ease of use. This is one of the most important aspects of building a unique user experience. Owing to which video-on-demand and OTT will remain popular for a long time. For instance,


Also, in September 2020, Netflix Inc. registered around 201 million paid subscribers for its popular subscription-based video-on-demand services worldwide. Also, Amazon.com Inc.’s Amazon Prime Video platform reported around 117 million users worldwide in the same year.


DRIVING FACTORS


Increasing Adoption of Smart Devices and Online Streaming Applications, Benefit the Growth


The rising penetration of smartphones, smart TVs, and adoption of OTT platform accelerates the volume of video-on-demand service traffic. According to a March 2020 report by Cisco Systems, Inc. that by 2023, mobile connectivity will be available to more than 70% of the world's population. The global mobile subscriber rate is expected to rise from 5.1 billion (66% of the population) in 2018 to reach 5.7 billion (71% of the population) by 2023.


Over the last few years, online media consumption has surged. Mobile devices have surpassed desktop computers as the major source for consuming online media. As smartphone popularity rises, data usage will inevitably rise, resulting in an increase in online video consumption.


Further, over-the-top (OTT) platforms are content providers that are rapidly expanding as more people turn towards online channels for entertainment. According to a report published by ComScore in November 2021, over 50 million households around the globe already have access to OTT video, which they watch at the same rates as traditional TV viewers.


RESTRAINING FACTORS


Concern Regarding the Privacy of Video Content Hinders the Market Growth


Increasing concerns among market players about video contents piracy and protection are expected to hinder the video on demand market growth. It can reduce the number of consumers who are viewing content. For instance, according to a joint Digital Citizens Alliance-NAGRA study in August 2020, the pirate subscription IPTV service is being used by around 9 million subscribers in the United States.


Video content players face piracy risk that leads to substantial revenue losses. For instance, in October 2020, according to VdoCipher Media Solutions, owing to digital video piracy, the movie business alone lost between USD 40 to USD 97.1 billion.


SEGMENTATION


By Revenue Model Analysis


Increasing Demand for Subscription Based Video Content, Aid the Market


Based on the revenue model, the market is divided into subscription VoD, transactional VoD and advertisement-based VoD. The subscription VoD is projected to dominate the market during the forecast period. This is primarily attributed to the increasing number of subscribers to adopt the over-the-Top (OTT) platforms. Also, in April 2020, Zemoga, Inc. states that in terms of OTT time on home TVs, 65% goes to subscription video-on-demand (SVoD), 30% goes to free streaming, and 5% goes to transactional (TVoD).


Also, advertisement-based services (AVoD) are growing steadily due to the surge in demand for advertising videos for product and service promotions.


By Content Type Analysis


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High Demand for TV Channels with Surge in Strategic Partnerships by the Key Players Drives the Market


Based on the content type, the global market is divided into sports, music, TV entertainment, kids, movies, etc. Among this, TV entertainment is expected to have a significant market share. This is primarily attributed to the increasing number of big-budget movies, drama series projects and advertising online videos. Key companies are developing VoD platforms by adopting various business strategies such as partnerships and collaborations. For instance,



  • November 2021: Netflix Inc. collaborated with Hirokazu Koreeda, Japan’s filmmaker, to develop two projects and create big-budget movies and drama series.


Also, movies are expected to grow with the highest CAGR during the forecast period. This is primarily attributed to increasing on-demand movies by consumers. Also, several movie directors collaborate with streaming services providers to facilitate their films for their consumers. For instance,



  • September 2021: Netflix Inc. signed an agreement deal with Timo Tjahjanto, Indonesian director, for a new movie release on the platform. This strategy would provide international exposure for a film released in 2022.


REGIONAL INSIGHTS


North America Video on Demand Market Size, 2021 (USD Billion)

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The market has been analyzed across five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.


North America is expected to hold the largest video on demand market share during the forecast period. Key players in the region, such as Netflix, Amazon, Apple, Inc., and others, are focused on developing advanced VoD services for users. Also, North America is highly diverse, owing to rising investment by the leading players and surge in adoption of advanced technologies such as cloud computing and AI. These technologies are used by VoD platform developers to automate the video streaming process efficiently. For instance,



  • In October 2020, NVIDIA Corporation launched a cloud-based Maxine platform, which provides developers to enhance streaming video with GPU accelerated AI software. The NVIDIA Maxine suite is a cloud-based streaming video AI platform for service video streaming providers.


Asia Pacific is anticipated to grow with the highest CAGR during the forecast period. This is primarily attributed to a huge customer base and rising mobile internet users across various populous countries. The global players in the market are expanding their footprint in this region, owing to growing demand from the end-user such as sports, music, TV entertainment, and others. For instance,



  • According to a Media Partners Asia (MPA) report, Disney’s Hotstar had around 39 million active users in 2021. Also, according to the report, India will have 1 billion video screens by 2024.


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The Middle East and Africa are expected to develop significantly during the forecast period. This is primarily owing to the surge in the development of the media and entertainment industry. The Latin American market is also growing at a moderate growth rate owing to increasing investment by the leading global players. The surge in smartphone penetration and internet connectivity in Brazil, Mexico, Argentina, and others is considered one of the driving factors.


KEY INDUSTRY PLAYERS:


 Increasing Business Expansion Strategies by the Key Players, Aid the Market Growth


Key players in the market, including Alphabet, Inc., Amazon.com, Inc., Hulu LLC (The Walt Disney Company), AT&T, Inc., Netflix Inc., Apple, Inc., and others, are focused on offering online VoD services. These major players are entering into a strategic partnership to grow their businesses across countries.



  •  July 2021: The Carlyle Group acquired Liveu live video streaming company for around USD 400 million. This strengthens the video transmission and video streaming service.

  • May 2021: AT&T, Inc., Telecom signed a deal to combine its content unit WarnerMedia LLC with Discovery, Inc. AT&T also owns HBO, CNN, and Warner Bros. Discovery Inc.’s channels, such as TLC, Animal Planet, and the Discovery Channel.


List of the Key Companies Profiled:



  • Alphabet, Inc. (California, U.S.)

  • Amazon.com, Inc. (Washington, U.S.)

  • Hulu LLC (The Walt Disney Company) (California, U.S.)

  • AT&T, Inc. (Warner Media, LLC and Discovery, Inc.) (Texas, U.S.)

  • Netflix, Inc. (California, U.S.)

  • Apple, Inc. (California, U.S.)

  • Comcast Corporation (Philadelphia, U.S.)

  • Facebook, Inc. (California, U.S.)

  • Telefonaktiebolaget LM Ericsson (Stockholm, Sweden)

  • Verizon Communications Inc. (New York, U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • September 2021: Amazon.com Inc. launched prime video channels across India. The premium video Channels provide access to several on-demand video channels, including Lionsgate Play, discovery+, Eros Now, Docubay, Hoichoi, MUB, Manorama Max, and Shorts TV for its prime members.

  • July 2021: Comcast Corporation and ViacomCBS Inc. partnered to expand their streaming services in the international market. Comcast Corporation’s NBCUniversal Peacock has more than 42 million subscribers in the U.S. Also, ViacomCBS Inc.’s Paramount+ has around 36 million subscribers base for its video streaming platform.

  • July 2021: Comcast Corporation and ViacomCBS Inc. partnered to expand their streaming services in the international market. Comcast Corporation's NBCUniversal Peacock has more than 42 million subscribers in the U.S. Also, ViacomCBS Inc.'s Paramount+ has around 36 million subscribers base for its video streaming platform.


REPORT COVERAGE


An Infographic Representation of Video On Demand Market

To get information on various segments, share your queries with us



The market research report highlights leading regions throughout the world to better understand the user.  In addition, the research examines fully embraced technology around the world and provides insights into most industry and market trends. It also highlights some of the market's growth-stimulating elements and restrictions, allowing the reader to understand the market thoroughly.


REPORT SCOPE & SEGMENTATION


















































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD billion)



Segmentation



Revenue Model; Content-Type; and Geography



By Revenue Model




  • Subscription Video on Demand (SVoD)

  • Transactional Video On Demand (TVoD)

  • Advertisement Based Video On Demand (AVoD)



By Content Type




  • Sports

  • Music

  • TV Entertainment

  • Kids

  • Movies

  • Others



By Region




  • North America (By Revenue Model, By Content Type, And By Country)

    • U.S. (By Content Type)

    • Canada (By Content Type)





  • Europe (By Revenue Model, By Content Type, And By Country)

    • U.K (By Content Type)

    • Germany (By Content Type)

    • France (By Content Type)

    • Italy (By Content Type)

    • Spain (By Content Type)

    • Russia (By Content Type)

    • Rest of Europe





  • Asia Pacific (By Revenue Model, By Content Type, And By Country)


    • China (By Content Type)

    • Japan (By Content Type)

    • India (By Content Type)

    • Southeast Asia (By Content Type)

    • South Korea (By Content Type)

    • Rest of Asia Pacific




  • Middle East & Africa (By Revenue Model, By Content Type, And By country)

    • GCC (By Content Type)

    • South Africa (By Content Type)

    • Rest of the Middle East & Africa





  • Latin America (By Revenue Model, By Content Type, And By Country)

    • Brazil (By Content Type)

    • Mexico (By Content Type)

    • Rest of Latin America





Frequently Asked Questions

The market is projected to reach USD 257.59 billion by 2029.

In 2021, the market size stood at USD 69.55 billion.

The market is projected to grow at a CAGR of 17.6%.

The subscription (SVoD) is likely to lead the market.

The increasing adoption of video streaming and OTT platforms is escalating the market growth.

Alphabet, Inc., Amazon.com, Inc., Hulu LLC (The Walt Disney Company), AT&T (WarnerMedia, LLC and Discovery, Inc.), Netflix Inc., Apple, Inc., are the top players in the market.

North America is expected to hold the largest share in the market.

Movies in the content type segment are expected to grow with a CAGR of 20.1%.

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