Video on demand is becoming a part of daily viewing habits for everyone as they can stream or download content from an online source or a traditional TV package has better control over what to watch, how to watch and where to watch.
Infinium global research has released a report that estimates the market for video on demand will reach up to US$80 billion, with a compound annual growth rate [CAGR] of 15.25% by 2025. Following is data from the report:
In 2018, there were 5.9 billion mobile subscriptions worldwide. This is set to touch eight billion by 2025. 4G is the dominant platform and is projected to peak in 2022. Nevertheless, it is expected to decline in subscriptions by the end of 2025 as 5G becomes more common. The number of estimated 5G connections is expected to reach 2.6 billion globally by 2025, accounting for 29% of all mobile subscriptions.
The rapidly growing use of smartphones is increasing the consumption of Video-on-Demand digital media content. Currently, there are 5.11 billion unique mobile users in the world, which increased by 100 million from 2018. In addition, there were 4.39 billion internet users in 2019, with an increase of 366 million (9 %) from January 2018.
Countries such as China and India are at the forefront of driving the growth of mobile phones and also has the highest average monthly mobile data consumption per smartphone. What’s more, the growing trend of binge-watching on Netflix, Prime Video, Hotstar, Eros Now, Viu, and other video streaming services among the youngsters are driving the growth of the VoD market.
On the other side, the video-on-demand service industry is greatly affected by digital piracy. Piracy has burst along with OTT reflecting a shift away from slow-to-download and risky .mp4 files to free internet streaming. The quality of pirated content has increased radically with instant access to new film releases, TV series and live sports accessed on illicit streaming devices.
Also,, the advent of 5G networks is anticipated to be another wave of innovation, new players, and potentially disruption on the existing value chain as video consumption and entertainment grows more mobile. 5G networks will provide better quality video on mobile devices and additional immersive experiences, among other benefits.
The OTT Services market is projected to grow rapidly during the forecast period with the growing technological advancements, along with the emergence of infrastructure. Based on the monetization model, the global VoD market is divided into transaction-based, subscription-based, and advertising-based.