Video on demand (VoD) is a service that enables users to view video content from a wide range of digital libraries and control the temporal order to view content through internet. VoD service provides a wide range of video content such as movies, music, TV series, and sports to users for streaming and downloading. Furthermore, VoD systems deliver the services to users through multiple platforms and connected devices such as smartphones, tablets, computers, cable television, and smart TVs. Companies are developing better applications to deliver effective and efficient VoD services on the user’s device to enhance the viewing experience. VoD service providers are collaborating with content producers to provide exclusive and premium content to viewers.

VoD services are transforming the traditional television landscape by offering unique features such as high quality and exclusive video content on demand through broadband and mobile networks. The VoD market is mostly driven by factors such as growing adoption of mobile devices for watching online videos and increasing internet based consumer spending. In addition, the rapid developments in high-speed networks are enabling video on demand service providers to deliver faster downloading and streaming service to users. Demand for personalized viewing of content is increasing which enables users to watch the content as per their convenience. However, piracy is one of the major concerns of the VoD market.

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Unauthorized and illegal downloading, and sale of content is hampering the growth of the VoD market. Furthermore, rules and regulations by countries related to specific content is a barrier to VoD service providers. VoD service providers deliver exclusive content by entering into commercial agreements with content providers. Hence, it is important for VoD service providers to maintain such agreements and licenses for continual offering of video content to users. The adoption of mobile TV and multi-screen services for content viewing is increasing. In addition, increasing penetration of smartphones and growing online users across the world are expected to provide prominent opportunities for the video on demand market.

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On the basis of business model, the VoD market is segmented into transactional video on demand (TVoD), subscription video on demand (SVoD), advertisement video on demand (AVoD), and hybrid (SVoD + AVoD). Among these business models, the SVoD segment is anticipated to see significant growth due to unique features such as unlimited access to contents. AVoD and hybrid models include advertisements during the streaming of content. In terms of content, the VoD market can be segmented into sports, entertainment, education and information, and TV commerce. Increasing content production such as movies, music, TV series, and documentaries by film studios, producers, and record labels are driving the adoption of on demand services around the globe.

North America held the largest share of the video on demand market in 2019. This is primarily due to significant presence of video on demand service providers, and increased demand for on demand services for video consumption. Moreover, the increased content production of entertainment, sports, and TV commerce along with collaboration of content producers with on demand service providers across the region has led to the adoption of video on demand services. The market in the Asia Pacific region is anticipated to show considerable growth which is primarily due to increasing consumption of pay-per-view programs and movies.

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The global video on demand market is largely driven by product launches and partnerships. For instance, in April 2018, Netflix partnered with Tata Sky, a direct broadcast satellite television provider in India. The partnership with Netflix would add another dimension to provide world-wide quality content on-demand for Tata Sky’s subscribers.

The growing adoption of video on demand (VoD) services has led to enhanced presence of global and regional VoD service providers across the world. Therefore, VoD service providers are facing competition in price and quality of service offerings. In addition, VoD service providers are facing strong competition from local service providers due to availability of content in regional languages.  Major players in the video on demand market include

  •, Inc.
  • Home Box Office, Inc.
  • Hulu LLC
  • Apple, Inc.
  • Netflix, Inc.
  • Telefonaktiebolaget LM Ericsson (Ericsson Television)
  • Verizon Communication, LLC,
  • YouTubemaxdome GmbH,
  • Canalplay.

Flexibility Key Consumer Proposition in Video on Demand Market

Video on demand (VoD), in contrast to live streaming, has gathered striking steam among consumers and broadcasters over the years. The key aspect from which stems the popularity is the flexibility VoD model offers. Over the years, the user’s streaming preferences has undergone massive shifts. The drive for video contents, be it for entertainment, educational, or promotional, stems from the flexibility they have for viewers to schedule their time, a better streaming experience, and wide choices of subscription models. Broadcasters too can optimize the content before its publications and usually partner with different technology players to optimize the overall viewers’ experience. All these trends are shaping the contours of the VoD market. In recent months, the emergence of OTT platforms, especially among millennials and Gen Z, backed by reliable and low-cost internet connections has encouraged new revenue streams for players in the VoD market. Offerings that support tiered subscription rates and the growing traction of modern content delivery methods with viewers have enriched the market landscape. In recent years, brands have increasingly realized the utility of VoD platforms to advance new business propositions, opening new avenues for providers and other players in the value chain.

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