VOD market set to more than double
DetailsMichelle Clancy | 10 February 2015
The video-on-demand (VOD) market is expected to grow from $25.30 billion in 2014, to $61.40 billion in 2019, research has revealed.
That makes the CAGR a healthy 19.4% during the forecast period, according to the report from MarketsandMarkets.
The firm said that major forces driving this market are the need to reach audiences on any device, delivering the best possible viewer experience, enabling time-shifting and scalability.
"VOD solutions helps the viewers to reach any connected device, offering a key competitive advantage in terms of consumer reach despite of various challenges involved such as diversified bit rates, operating systems, digital rights management (DRM) and multiple screen formats," it explained. "As customers want to acquire large number of programmes, they demand high quality videos, and this is where an emergence of OTT and IPTV occur. Therefore, TV no longer considers itself a push industry, because viewers are now pulling the content they require."
As the TV experience is changing rapidly from a traditional linear TV, OTT viewers are surpassing IPTV viewers, it added — so VOD providers are consolidating their grounds in the highly competitive market through mergers and acquisitions to build feature-rich solutions and attain better market visibility.
In terms of regions, North America is expected to be the biggest market in terms of revenue contribution trough 2019, while Asia Pacific and the Middle East and Africa are expected to experience increased market traction.