VOD (Video on Demand) systems allow users to choose and view/listen to video or audio content such as movies and TV shows whenever they choose, rather than needing to watch at a set time. The growth of VOD is having the greatest impact on traditional pay-TV distributors, or MVPDs (Multichannel Video Programming Distributors), whose subscriber growth has begun to slow in several markets.
VIDEO ON DEMAND MARKET SEGMENTATION
Video On Demand Market By Fee Induced
- Rentals or Pay per view
- Ad Based
- Digital Purchase
Video On Demand Market By Geography
Video On Demand Market By Device used
VIDEO ON DEMAND MARKET DYNAMICS
Since the COVID-19 outbreak a few months ago, the public has been kept in lockdown. As the number of countries enforcing house quarantine grows, so does the percentage of the world population under lockdown. By April 20th, 2020, over a third of the world’s population will be under siege. As a result, the public’s screen time on mobile phones and other electronic devices that support streaming platforms has increased.
VIDEO ON DEMAND MARKET BY FEE INDUCED
Pay-per-view movies Even though VOD services were among the first of their sort in the industry, they still required a cable membership. These are becoming obsolete because they only enable a limited amount of content to be watched each payment. In the VOD sector, subscription is the most popular option. The advent of over-the-top (OTT) platforms like Netflix, Amazon Prime, Hotstar, and others has been a major driving force in this market. The spike is due to the large number of contents available and their accessibility. The high cost of subscriptions is impeding expansion.
US VIDEO ON DEMAND MARKET
The United States has been the most profitable region. The shift away from traditional cable and satellite networks, as well as the greater availability of high-quality material on online platforms, has enticed more individuals to use on-demand services. Another key aspect influencing the market is the rise of streaming platforms based in the United States. During the current lockdown, it is expected that people spend over 6-8 hours per day with the media, resulting in a significant increase in daily screen time for these services.
EUROPE VIDEO ON DEMAND MARKET
The pay-per-view and rental video-on-demand (VOD) segments continue to be industry leaders in Europe. There has been a gradual trend toward subscription-based VOD services. There has been a 30% surge in internet traffic since the lockout. Since its inception in late March, Disney+ has gained 5 million users, bringing the total number of customers to 30 million.
INDIA VIDEO ON DEMAND MARKET
In India, video on demand services were slow to catch on. Hotstar first launched in India in February 2015, followed by Netflix in January 2016, and then Amazon’s Prime Video in December 2016.
In India, there are already 26 video on demand service providers, including regional players, in less than 5 years. Their revenue is made up of recurring subscription money and revenue from free users’ advertisements.
CHINA VIDEO ON DEMAND MARKET
As a result of the coronavirus lockdown, the number of consumers of on-demand services is likely to reach close to 530 million. China’s National Film Bureau is promoting a robust supply of online streaming content in order to avoid returning to theatres right away.
RECENT VIDEO ON DEMAND MARKET TRENDS
- To help internet providers cope with the growing demand for bandwidth, service providers are switching to lower image quality to reduce web traffic.
- Since the lockout, Disney+ and Hulu have emerged as the most popular subscription services in the United States.
- On April 3rd, 2020, Disney launched the app as “Disney+hotstar” following its total takeover of hotstar.
- During the first week of lockdown in the United States in March, Netflix reached an all-time high in terms of traffic and screen time.
VIDEO ON DEMAND MARKET SIZE AND FORECAST
VOD service providers all around the world have benefited greatly from the pandemic. However, there has been concern that if the lockdown continues, it would approach a saturation point. The main cause for concern is that the lockdown has halted the entire filming process, so there will be no new footage to broadcast.
VIDEO ON DEMAND MARKET COMPETITIVE LANDSCAPE
Advertising (or ad-based) video on demand (AVOD): Because YouTube has such a large viewership, the AVOD strategy is ideal. Users happily wait for the advertisement to end before watching their favourite video on YouTube, which has grown in popularity. However, because AVOD is volume-driven, it is undesirable for emerging OTT market players who have yet to build a subscriber base.
VIDEO ON DEMAND MARKET COMPANY PROFILES
- Amazon Prime Video
- Disney Hotstar
Read More Information: https://mobilityforesights.com/product/video-on-demand-market/
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