VOD value soars to $45BN as viewing dynamic flips from push to pull
Editor | 09-12-2013
Video-on-demand (VOD) services are being pinpointed, says research firm Marketsandmarkets, as the key for pay-TV operators - especially those in the cable sector - to increase profits and satisfy customers.
The report, Video On Demand (VOD) Market By Solutions (Pay TV, OTT, IPTV); By Delivery (TVOD, SVOD, NVOD); By Applications (Entertainment, Education And Training, Video Kiosk, E-Commerce, Digital Libraries) Global Advancements, Market Forecasts And Analysis (2013-2018), says that fundamentally VOD has a great potential to be a successful revenue generator and support cable operators and content providers. Marketsandmarkets puts a figure of $45.25 billion by 2018 on this value.
The analyst suggests that major forces driving the on-demand market are offering a key competitive advantage in terms of consumer reach despite various challenges involved such as diversified bit rates, operating systems, digital rights management (DRM) and multiple screen formats. It adds that the industry is also being driven by customers’ almost insatiable desire in an industry that it says is no longer a push industry, as viewers pull the content they require.
It adds that as the TV experience is changing rapidly from traditional linear TV, over-the-top (OTT) viewers are surpassing IPTV viewers. It expects VOD providers to consolidate their ground in the highly competitive market through mergers and acquisitions to build feature-rich solutions and attain better market visibility.