New Delhi, Nov. 25, 2024 (GLOBE NEWSWIRE) -- The global video-on-demand (VOD) market was valued at US$ 240.40 billion in 2023 and is expected to reach US$ 786.10 billion by 2032, at a CAGR of 14.07% during the forecast period from 2024-2032.
The streaming Video-on-demand (VOD) market continues to experience significant growth and transformation, driven by evolving consumer preferences, technological advancements, and intense market competition. This analysis examines the current state and future trajectory of the market, incorporating insights from recent research and industry trends. The VoD landscape is characterized by rapid expansion and shifting consumer behaviors. Apple TV+ has emerged as the fastest-growing major subscription video on demand (SVoD) service in terms of percentage subscriber growth during Q1 2024, indicating strong market presence and increasing consumer interest. Simultaneously, local streaming services such as Movistar+ in Spain, Joyn Plus+ in Germany, and Kayo in Australia have experienced record shares of new paid subscribers, attributed to their tailored content offerings, particularly in sports and reality shows. However, the market is approaching saturation in some regions, with 95% of U.S. households having at least one streaming service as of Q3 2024. This saturation suggests that future growth may rely more on international markets and innovative service offerings to sustain momentum.
Request Free Sample Copy of the Report @ https://www.astuteanalytica.com/request-sample/video-on-demand-market
Key Findings in Video-on-Demand (VOD) Market
| Market Forecast (2032) | US$ 786.10 billion |
| CAGR | 14.07% |
| Largest Region (2023) | North America (30.7%) |
| By Service Type | Subscription Services (68.5%) |
| By Platform | Smartphones & Tablets (45.0%) |
| By Content Type | TV Entertainment (27.7%) |
| Revenue Model | Advertising Based (44.0%) |
| By Application | Media & Entertainment (44.5%) |
| By Subscriber Type | Residential (65.9%) |
| Top Drivers |
|
| Top Trends |
|
| Top Challenges |
|
Booming Ad-Supported Models and Price Sensitivity
A significant trend in the Video-on-demand (VOD) market is the increasing adoption of ad-supported models. Ad-supported video on demand (AVoD) saw a 10% increase quarter-on-quarter in Q2 2024, reflecting growing consumer acceptance of ads in exchange for lower subscription costs. This shift is evident in the introduction of ad-supported tiers by major players like Prime Video, although consumer reactions have been mixed. Price sensitivity remains a crucial factor, with Australian and German households showing increased cancellations as consumers seek to save money. This highlights the importance of balancing pricing strategies with content quality to maintain subscriber bases.
Content Strategies and Engagement
Content remains king in the streaming wars, with platforms across the Video-on-demand (VOD) market focusing on diverse strategies to enhance viewer engagement. Disney+ is exploring 'always on' programming to reduce cancellations due to infrequent use, aiming to increase daily engagement beyond the current 41% of Disney+ households. Local content and sports have become significant drivers of subscriber growth, with services like Movistar+ and Kayo seeing substantial increases in new paid subscribers due to their focus on local sports and content.
Industry Consolidation and Profitability Focus
The streaming industry is witnessing significant consolidation as companies seek to merge and create larger entities to capture more market share. Potential mergers like Warner Bros. Discovery with Paramount, or NBCUniversal with Warner, are being discussed to consolidate content libraries and create more competitive offerings. Furthermore, many streaming services are shifting their focus from subscriber growth to profitability. Netflix has successfully increased its revenue and profit margins by implementing strategies like password-sharing crackdowns and introducing ad-supported tiers. Other companies, like Disney, are working towards making their streaming units profitable, with Disney aiming for profitability by late 2024.
The Rise of Video on Demand in Asia Pacific Region: Market Share to Zoom from 23% in 2023 to Beyond 28.3% by 2032
The Video-on-demand (VOD) market in Asia pacific is witnessing unprecedented growth, driven by technological advancements and changing consumer preferences. This surge is largely attributed to the increasing adoption of technologies like artificial intelligence and blockchain, which enhance the streaming experience. The market's expansion is further supported by the growing number of internet users and the widespread availability of high-speed internet, including 5G networks, which facilitate seamless streaming.
- Expanding User Base and Penetration
The user base for Video-on-demand (VOD) market in Asia is expanding rapidly, with the number of subscription over-the-top (sub OTT) service users in the Asia-Pacific region growing by 5.8% in 2023, reaching 1.23 billion viewers. Countries like Indonesia and India are at the forefront of this growth. The region's digital video viewership accounts for 58.5% of the global share, underscoring its dominance in the digital video space. User penetration rates are also on the rise, with the current rate at 16.2% in 2024, expected to increase to 18.5% by 2027. Additionally, OTT video user penetration is projected to be 49.8% in 2024, with an anticipated increase to 62.5% by 2029, highlighting the growing adoption of VOD services across the region.
- Market Giants and Strategic Investments
Several global and local market giants are competing for dominance in the Asian Video-on-demand (VOD) market. Netflix, for instance, has been actively expanding its presence in Southeast Asia, launching a Vietnamese language version of its platform and offering a free plan for Android users in Vietnam. Amazon Prime Video is leveraging its extensive ecosystem to attract subscribers, while Amazon Web Services (AWS) has committed $9 billion to expand its cloud infrastructure in Singapore, indirectly supporting the VOD ecosystem. Disney+ has made significant strategic moves in India, merging with Reliance Industries to create India's largest entertainment company, aiming to capture a significant share of the Indian TV and streaming market.
- Successful Local VOD Services
In addition to global players, several local VOD services have found success in Asian markets. Platforms like iflix and Viu cater to Southeast Asian audiences with a strong selection of local and Hollywood content. In South Korea, Wavve offers a mix of local TV shows, movies, and international content, focusing on local preferences. Vidio, a local OTT platform in Indonesia, has been growing steadily, offering a mix of local and international content with a focus on sports. Vidio leads the Indonesian market with 4.1 million customers, thanks to its emphasis on premium sports content and local dramas.
Ask For Customization @ https://www.astuteanalytica.com/ask-for-customization/video-on-demand-market
The Intensely Competitive Video-on-demand (VOD) market of 2023: Global Giants, Revenue Strategies, and Advertising Growth
The Video-on-demand (VOD) market in 2023 is fiercely competitive, with both global giants and regional players vying for market dominance. Key drivers of this competitiveness include content quality, technological innovation, pricing strategies, and regional market penetration. Leading the global VOD landscape is Netflix, boasting over 230 million subscribers and generating revenue surpassing $31 billion. In 2023, the company held over 19% revenue of the market. This market leader's continuous growth is bolstered by introducing an ad-supported tier, which is expected to significantly enhance revenue from 2023 to 2027. Amazon Prime Video, leveraging its extensive ecosystem, remains a formidable competitor through a strategic mix of original and licensed content that appeals to a broad audience worldwide.
Disney+ has rapidly gained market share since its launch, capitalizing on its strong brand and vast content library in the Video-on-demand (VOD) market, which includes franchises like Disney, Marvel, Star Wars, and National Geographic. Its ad-supported model is expected to drive substantial revenue growth, with projections indicating significant advertising revenue increases from 2023 to 2025. Meanwhile, Apple TV+ is expanding its presence through exclusive content offerings and seamless integration with Apple's hardware ecosystem, even though its market share remains smaller compared to Netflix and Amazon. In North America, Hulu and HBO Max are significant players. Hulu is known for its diverse content and competitive pricing, while HBO Max draws audiences with its premium content offerings.
Revenue generation in the Video-on-demand market increasingly relies on advertising, with platforms like Paramount+ in the United States capitalizing on this trend to grow their revenue streams. Paramount+ has been particularly successful in generating advertising revenue, with expectations for continued growth through 2024. In short, advertising is projected to account for about 28% of global streaming revenues by 2028, up from 20% in 2023. This shift highlights the growing importance of advertising as a revenue stream, driving platforms to innovate and diversify their monetization strategies to capture a larger share of the burgeoning Video-on-demand (VOD) market.
Global Video on Demand Market Key Players:
- Alphabet Inc. (Youtube)
- Amazon Inc.
- Apple Inc.
- Chicken Soup for the Soul Entertainment, Inc. (Crackle Inc.)
- Comcast Corporation
- DirecTV LLC
- Dish TV
- iNDIEFLIX Group Inc.
- Liberty Global plc
- MatrixStream Technologies Inc.
- Netflix Inc.
- TalkTalk Telecom Group Limited
- The Walt Disney Company (Hulu)
- Verizon Communications Inc.
- Warner Bros. Discovery, Inc., (HBO)
- Other Prominent Players
Key Segmentation:
By Service Type
- Subscription Services
- IPTV (Internet Protocol Television)
- OTT (Over the Top)
- Pay-TV
- Professional Services
- Consulting
- Training & Support
- Managed Services
By Platform
- Laptops & Desktops
- Smartphones & Tablets
- Smart TV
By Content Type
- Sports
- Music
- TV Entertainment
- Kids
- Movies
- News
- Others
By Revenue Model
- Transaction Based (TVoD)
- Subscription Based (SVoD)
- Advertising Based (AVoD)
- Others
By Application
- Media and Entertainment
- Education and Training
- Health and Fitness
- Traveling and Gaming
- Other Applications
By Subscriber Type
- Residential
- Commercial
- Hotels
- Educational Institutes
- Hospitals
- Transportation
- Enterprises
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
Need a detailed report walkthrough? Request an online presentation from our analyst @ https://www.astuteanalytica.com/speak-analyst/video-on-demand-market
About Astute Analytica
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/
LinkedIn | Twitter | YouTube
