Video on Demand (VoD) Market

The Video on Demand Market worldwide was reasonably estimated at $146.6 billion in 2023. Throughout the projection period, the Video on Demand Industry is anticipated to increase at a CAGR of 13.0% in between 2023-2028 to reach around $270.3 billion in 2028. Video on demand solutions and services play a pivotal role across various industry verticals and regions, offering unparalleled opportunities for content delivery, monetization, and audience engagement. In the entertainment sector, VoD platforms have revolutionized how consumers access and consume media content, enabling on-demand viewing of movies, TV shows, and other forms of entertainment. Companies in this sector leverage VoD services to distribute their content directly to viewers, bypassing traditional broadcast channels and reaching global audiences efficiently.

Furthermore, VoD solutions empower content creators with valuable insights into viewer preferences and behavior, facilitating targeted content recommendations and personalized experiences. Beyond entertainment, VoD technology is increasingly adopted in educational institutions, facilitating flexible and convenient access to educational resources, lectures, and training materials. Additionally, VoD solutions find applications in corporate environments for internal training, onboarding, and knowledge dissemination purposes. In regions with limited access to traditional broadcasting infrastructure, such as rural areas or developing countries, VoD services offer a cost-effective and scalable means of delivering content to remote populations, bridging the digital divide, and fostering socio-economic development. VoD solutions are reshaping industries and regions by democratizing access to information and entertainment while unlocking new avenues for revenue generation and audience engagement.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

Video on Demand Market Growth Dynamics

Driver:  Rising Demand for video content across industries

The Video on Demand market is experiencing a significant surge in demand, primarily driven by the increasing appetite for video content across various industries. The widespread adoption of digital platforms and technological advancements have fueled this trend, making VoD services a pivotal driver in entertainment and information dissemination. The surge in demand is not only restricted to traditional media and entertainment but extends to educational, corporate, and healthcare industries.

As more industries recognize the potential of video content for communication, training, and customer engagement, the demand for VoD services continues to rise. This shift reshapes how organizations deliver information and entertainment, pushing for more accessible and convenient platforms. The COVID-19 pandemic accelerated the VoD trend, with remote work and virtual events becoming the norm, emphasizing the need for flexible and on-demand video solutions. In essence, the increased demand for video content across diverse industries drives the growth and evolution of the video on demand market, propelling it to the forefront of modern communication and content consumption.

Restraint: The growing threat of video content piracy

The Video on Demand faces a notable restraint in the form of the growing threat to video content privacy. As the consumption of on-demand video content escalates, concerns regarding the security and confidentiality of user data have become increasingly pronounced. Users entrust platforms with sensitive information, and the risk of unauthorized access, data breaches, or misuse poses a significant challenge to the industry.

Data privacy violations, unauthorized sharing of personal information, and the potential exploitation of user data for targeted advertising or other purposes have raised consumer alarms. Stricter regulations, such as GDPR and other privacy laws, highlight the need for video on demand platforms to implement robust security measures to safeguard user privacy. Compliance with these regulations poses operational challenges for service providers and adds complexity to the user experience. The growing awareness and concern surrounding video content privacy issues could hinder user trust and adoption of VoD services. Addressing these privacy challenges becomes imperative for the sustained growth of the market, necessitating a delicate balance between providing personalized content recommendations and ensuring the stringent protection of user data to mitigate the restraint posed by the escalating threat to video content privacy. Top of Form

Opportunity: Rise in online education and e-learning to improve the learning experience

The video on demand market is poised for significant opportunities with the rise of online education and e-learning, presenting fertile ground for enhancing the learning experience. As educational institutions and corporate entities increasingly embrace digital learning solutions, VoD platforms can be pivotal in delivering engaging and on-demand educational content. The flexibility offered by VoD allows students and learners to access a vast array of educational materials, lectures, and tutorials at their convenience, catering to diverse learning styles and schedules.

The dynamic capabilities of VoD, including pause, rewind, and replay options, contribute to a personalized and practical learning experience. Integrating interactive features and assessments within video content enhances student engagement and comprehension. Furthermore, the global reach of VoD platforms facilitates seamless access to educational resources from virtually anywhere, transcending geographical limitations. As the demand for online education continues to surge, VoD providers can collaborate with academic institutions, content creators, and e-learning platforms to enrich the educational landscape. This presents a win-win scenario, fostering the video on demand market's growth while revolutionizing how individuals access and consume educational content in a digital era.

Challenge: High cost of video content creation

A significant challenge facing the video on demand market is the high cost associated with video content creation. Producing high-quality and engaging video content requires substantial financial investments in talent, equipment, and post-production processes. This poses a hurdle for content creators and platforms looking to maintain a diverse and compelling content library.

The demand for original and exclusive content to attract and retain subscribers further amplifies the financial strain on VoD providers. Competing in an increasingly saturated market means platforms must consistently invest in content creation to stand out. This high production cost impacts established players and poses an entry barrier for new entrants, limiting the diversity and innovation in the VoD space. Moreover, the evolving landscape of viewer preferences and technological advancements necessitates continuous adaptation and investment in new content formats, resolutions, and interactive features, adding to the financial burden. Striking a balance between creating premium content and managing production costs becomes crucial for the sustainability of VoD platforms, requiring strategic planning and innovative solutions to address the challenge of the high cost of video content creation in an ever-competitive market.

Video on Demand Market Ecosystem

The section highlights the market's key players: input, VoD software, delivery, deployment, process, input, and end-users. The chapter describes the companies offering services and solutions in the video on demand market and the latest company developments related to MarketsandMarkets’ analysis of these vendors. It further highlights the unique differentiation points of each company and its expertise in the market.

The video on demand market operates within a dynamic and interconnected ecosystem, involving various stakeholders contributing to its growth and evolution. Content creators, from major studios to independent producers, form the foundation by generating diverse and engaging video content. These creators collaborate with production houses and distributors, ensuring a steady influx of high-quality content into the VoD ecosystem. Streaming platforms, both global giants and niche players, serve as the primary delivery channels, providing users with on-demand access to vast content. Device manufacturers and technology companies contribute by developing and optimizing hardware and software to enhance the viewing experience across different devices, from smart TVs to smartphones. Telecommunication and internet service providers are crucial in facilitating seamless content delivery by ensuring robust, high-speed internet connectivity. Additionally, advertisers leverage VoD platforms for targeted and personalized advertising, creating a revenue stream for both platforms and content creators. Viewer data analytics firms contribute by providing insights into user preferences, aiding in content curation and platform optimization. Regulatory bodies and industry associations also shape the VoD landscape through policy frameworks and standards. This interconnected ecosystem reflects the collaborative efforts of various entities, each fulfilling a unique role in driving innovation, content diversity, and accessibility within the video on demand market.

Based on verticals, the media entertainment vertical is expected to dominate the market during the forecast period.

Based on the verticals, the video on demand market is segmented into BFSI, education, healthcare and life sciences, government and public sector, media and entertainment, and other verticals. The media and entertainment vertical is expected to hold the largest market share during the forecast period. VoD solutions and services play a transformative role in the media and entertainment vertical by revolutionizing content delivery and viewer engagement. VoD solutions encompass a suite of technologies and services that enable organizations to manage, distribute, and monetize digital content efficiently. This includes CDNs for seamless streaming, DRM systems for secure content access, and analytics tools for understanding viewer behavior. These solutions empower media companies to offer personalized, on-demand content experiences across various platforms, meeting consumers' evolving preferences. Services related to VoD, such as consulting, implementation and integration, and support and maintenance, are crucial for media and entertainment businesses. Consulting services guide organizations in strategic decision-making, helping them navigate licensing agreements, market trends, and emerging technologies. Implementation services ensure the seamless integration of VoD platforms, optimizing technical infrastructure for reliable content delivery. Ongoing support services maintain platform performance, addressing issues promptly to enhance user satisfaction. In the media and entertainment sector, VoD solutions and services collectively drive innovation, improve audience engagement, and contribute to the industry's adaptation to the digital age.

Based on the content type, the educational/fitness programs segment is expected to have the highest CAGR growth rate during the forecast period.

The video on demand market is segmented into movies, music, TV shows/web series, educational/fitness programs, and other content types based on the content type. As per the content type, the academic/fitness programs segment is expected to hold the highest CAGR during the forecast period. Educational and fitness program content types play an essential role in the video on demand market by providing users with access to instructional and motivational content to support personal development and well-being. VoD platforms offer various educational programs covering language learning, academic subjects, professional development, and specialized skills training. Users can access these resources on demand, allowing them to learn at their own pace and tailor their educational experience to their interests and goals.

Similarly, fitness program content types offer users a convenient way to access workout routines, exercise classes, and wellness content from the comfort of their homes. video on demand platforms feature a variety of fitness programs catering to different fitness levels, including cardio, strength training, yoga, Pilates, and mindfulness practices. Users can choose from diverse workouts led by certified instructors, follow structured training plans, and track their progress over time, empowering them to achieve their fitness objectives and lead healthier lifestyles. Overall, educational and fitness program content types contribute to the holistic offerings of VoD platforms, supporting users' personal growth, health, and well-being through accessible and engaging digital content.

The US market is projected to contribute the largest share of the video on demand market in North America.

North America is expected to lead the video on demand (VoD) market in 2023. The US is estimated to account for the largest market share in North America in 2023, the market, and the trend is expected to continue until 2028. Video on Demand solutions and services are vital in the US region, offering diverse content delivery models catering to varied consumer preferences. Subscription-based streaming services, such as Netflix, Amazon Prime Video, and Hulu, dominate the market, providing subscribers with a vast library of on-demand content for a monthly fee. These platforms offer convenience and customization, allowing users to access many movies, TV shows, and original content without the constraints of traditional broadcast schedules. The popularity of subscription-based Video on Demand services has contributed significantly to the decline of cable TV subscriptions in the US, marking a shift in how audiences consume entertainment.

Transactional video-on-demand (TVoD) and advertising-supported (AVoD) models have also gained traction. TVoD allows users to rent or purchase individual titles on a pay-per-view basis, providing a more a-la-carte approach to content consumption. AVoD services, on the other hand, offer free content supported by ads. Platforms like YouTube and Pluto TV fall into the AVoD category, offering users a cost-free option in exchange for ad viewing. The coexistence of these various video on demand offering types in the US ensures a diverse and competitive landscape, giving consumers the flexibility to choose services that align with their viewing preferences and budget constraints.

Video on Demand Companies

The video on demand market is dominated by a few globally established players such as Netflix (US), Amazon (US), Google (US), The Walt Disney Company (US), Apple (US), Warner Bros Discovery (US), Comcast Corporation (US), Paramount Global (US), Sony (Japan), and Fox Corporation (US), among others, are the key vendors that secured video on demand contracts in last few years. Local participants only have local experience, while these vendors can add global processes and execution expertise. Customers are more likely to try new things in the video on demand market because of their higher discretionary budgets, ease of access to information, and quick adoption of technical items.

Want to explore hidden markets that can drive new revenue in Video on Demand (VoD) Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

This research report categorizes the video on demand market based on offering type, monetization model, content type, platform type, deployment model, vertical, and region.

Based on the Offering Type:

• Solutions
  • Pay TV
    • Cable TV
    • Direct to Home (DTH)
  • Over the Top (OTT) Services
  • Internet Protocol Television (IPTV)
• Services
  • Professional Services
    • Implementation & Integration
    • Consulting
    • Support & Maintenance
  • Managed Services

Based on the Platform Type:

• Smartphones
• Tablets/Laptops
• Smart TVs
• Other Platform Types

Based on the Monetization Model:

• Subscription Video on Demand (SVoD)
• Transactional Video on Demand (TVoD)
• Advertising-Support Video on Demand (AVoD)
• Free Ad-Supported Streaming TV (FAST)
• Electronic-Sell-Through (EST)

Based on the Deployment Model:

• Cloud
• On-Premises

Based on the Content-Type:

• Movies
• Music
• TV Shows/Web Series
• Educational/Fitness Programs
• Other Content Types

Based on the Vertical:

• BFSI
• Education
• Government & Public Sector
• Healthcare & Life Sciences
• Media & Entertainment
• Other Verticals

Based on the Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia & New Zealand
  • Rest of Asia Pacific
• Middle East & Africa
  • Gulf Cooperation Councils (GCC)
    • Kingdom of Saudi Arabia
    • United Arab Emirates
    • Rest of GCC Countries
  • South Africa
  • Rest of the Middle East Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In February 2024, Netflix announced Expedia Group will be its first global advertising partner to activate a multi-market campaign on the streamer’s ad-supported plan throughout 2024. Through this partnership, Expedia Group will accelerate its international expansion while also reinforcing Netflix’s multi-country advertising offering to marketers and members.
• In January 2024, The Walt Disney Company's collaboration with Apple Vision Pro represents leaps forward into the future of entertainment and storytelling. By harnessing the capabilities of Apple's cutting-edge augmented reality (AR) technology, Disney aims to revolutionize how audiences experience their beloved stories and characters.
• In December 2023, Amazon and IPG Mediabrands entered into a significant three-year deal to assist brands in reaching audiences through Prime Video ads. This partnership underscores the increasing importance of streaming platforms in advertising strategies and the growing influence of Amazon in the digital advertising space. Through this partnership, brands will access a wealth of targeting and measurement capabilities to engage with viewers on Prime Video effectively. This includes leveraging Amazon's rich data insights to target specific audience segments and optimize ad campaigns for maximum impact.
• In December 2023, Apple introduced its Apple TV app interface to enhance the viewing experience for users. The redesigned app offers a more intuitive interface, making it easier to discover and access content across various streaming services. It features personalized recommendations, curated collections, and enhanced search capabilities, allowing users to find more efficient content tailored to their preferences.
•  In November 2023, Google’s YouTube Premium recently received several noteworthy updates, enriching the user experience with cutting-edge features. One notable addition is the integration of AI-driven enhancements, which leverage advanced algorithms to personalize recommendations, improve content discovery, and enhance overall user engagement.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst