Online movie refers to a service, where an individual can access featured movies online using internet protocol. This platform enables user to watch any available movie from the database as desired at any given time and at any place with internet access. Rising demand for online movies is mainly attributed to the increased adoption of smartphones, augmented broadband services, hectic lifecycles, ease of access towards comprehensive movie collection, convenience of watching movies at any place or time and others such notable factors. Moreover, user friendly interface has influenced maximum users to access broad range of collection through genres, recommendations and augmented filter options. Furthermore, with the introduction of online featuring movies, the competition between online movie vendors and multiplex owners is rising significantly.
Recent advancements in the Internet have enabled users across the globe to retrieve wide array of movie collection with the help of high speed internet connection through downloading or streaming. Rising box-office success throughout the globe is one of the major factors driving a large number of users to switch to online movies. Furthermore, increasing efforts by the vendors to encourage more and more users by offering attractive subscription packages are further driving the market growth.
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Moreover, declining trends of consumers buying physical copies of movies such as DVDs and VCDs is the another key driving factor affecting the market growth for online movies. The online movie market is expected to witness tremendous escalation in the North America market owing to rising success and attractiveness of Hollywood movies. This success is due to advanced graphics, themes and concepts. Also, increase in mobile advertisement spending to bring brand awareness has further influenced the market for the vendors of online movies. However, rising threat of piracy is one of the major concerns restraining the market growth for online movies market. Introduction of “Stop Online Piracy Act” (SOPA) and the “Protect IP Act” (PIPA) by the U.S. has affected online movies vendors significantly, thereby restraining the market growth.
Online movie market can be segmented on the basis video file formats, types of services provided, delivery mode, end-use device and geography. On the basis of video file formats, the market is segmented into AVI (All Video Interlaced), AVCHD (Advanced Video Codec High Definition), FLV (Flash Video Format), MPEG (Motion Picture Experts Group), WMV (Windows Media Video), and MOV. Based on delivery mode, market segmentation includes self- hosted websites, software as a service (SaaS), application managed service framework and others. Types of services provided by the online movie vendors includes online streaming, DVD rental service, video on demand, downloading, subscriptions and others. Segmentation on the basis of end-use devices featuring online movies include tablets, smart phones, IPTV, DTH, laptops or personal computers and others. The online movie market has been studied for five geographies namely North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
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Some the key players in the global online movie market include Amazon.com Inc., Netflix Inc., Hulu, Apple Inc., Dish Network L.L.C., Home Box Office Inc., YouTube Inc., Sony Computer Entertainment, CinemaNow Corporation and Microsoft corporation among others.
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