According to a new market research report published by Credence Research “Global Video On-Demand Market (Technology (Subscription Video On Demand (SVOD), Transactional Video On Demand (TVOD), AD Based Video On Demand (AVOD)); Content Type (Sports, Music, TV Entertainment, Kids, Movies, Others) – Growth, Future Prospects and Competitive Analysis, 2019 – 2027”, the video on-demand market is set to grow with a CAGR of 9.2% during the forecast period.
The growth of the market is driven by the growing need among the media and entertainment companies to provide better customer experience. Over the past decade, a paradigm shift across the media and entertainment industry from content and distribution to user experience has been witnessed. This is mainly credited to the Increasing competition among the media companies. As the competition is increasing, companies started to focus on providing better experience to gain customer loyalty and gain an edge over competitors. This is the major factor driving the demand for video on demand market.
Emergence of OTT platforms has also led to the development of multiple new avenues for the growth of the market. OTT platforms caused a disruption in the media and entertainment industry. It has replaced the conventional TV based models and enabled individual viewership. It allows the viewers to watch whatever they want at anytime they want. Moreover, the uninterrupted connectivity is the primary factor augmenting the demand for the OTT platforms, which in turn is driving the video on demand market.
The video on demand market is categorized based on the application into the music, sports, TV entertainment, kid’s entertainment, movies and others. TV entertainment accounted for majority share of over 40% of the revenue in 2018. The growth of the market is driven by the convenience offered by the video on demand services to watch anything anytime. On the other hand, sports streaming is estimated to grow significantly during the forecast period.
Asia Pacific is estimated to grow at a CAGR of over 15% during the forecast period. The growth of the market is driven by the increasing adoption of internet and smartphones across the region. Moreover, low data rates the region also acts as a major force accelerating the adoption of the video on demand services. Additionally, increasing disposal income of the population is also serving as a major driver for the growth of the market in the region.
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