Global VOD market worth almost $50bn
James R | On 14, Mar 2016
The global video on-demand market was worth almost $50 billion last year.
A study by Future Market Insights reveals that the sector was worth $48.93 billion in 2015, and is poised to increase at 8.3 per cent annually during the period 2016 to 2026.
North America is the largest market for VOD, accounting for nearly $20bn of market revenues in 2015. Adoption of VOD in North America is driven by surging popularity in the US, supplemented by growth in Canada and Mexico.
The rapidly improving smartphone sector is also fuelling growth, particularly in developing nations of Asia Pacific, such as India, China, Vietnam, Singapore and The Philippines. The Asia Pacific VOD market, excluding Japan, is expected to increase at 14.6 per cent annually during the next decade, as VOD service providers, gaming content developers and third-party game providers focus on bolstering their presence in developing economies.
“Vertical integration by social media platforms to offer their own VOD services, and [the] rise and success of content-on-demand services are further contributing towards the adoption of VOD services,” comments Future Market Insights. Indeed, in recent months, Disney has launched its own SVOD service, while Twitter and Facebook increasingly place emphasis on their native video platforms. The latter social network now receives over 8 billion views a day for its videos.