VIDEO ON DEMAND SERVICE MARKET ANALYSIS

Video On Demand Service Market Size and Trends

The Global Video on Demand Service Market is estimated to be valued at US$ 101.09 Bn in 2024 and is expected to reach US$ 198.71 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 10.1%. Increasing penetration of smart TVs and mobile devices are contributing significantly to the growth of this market.

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Market trends suggest that there is increasing demand for video streaming on multiple devices from users, driving OTT platforms to invest in expanding their content libraries as well as improving streaming quality. Rising subscription of broadband and 5G penetration will further propel this growth. Major players are also focusing on localized content and regional language interfaces to target new audience.

Expansion of broadband and mobile internet access

The global penetration of high-speed broadband and mobile internet access has been steadily growing over the past decade. According to recent reports, over half of the world's population now has an internet connection with speeds fast enough to support high-quality video streaming. This growth has been particularly strong in emerging economies which are increasingly adopting smartphones and building out their telecom infrastructure. As access expands to rural and remote areas worldwide, more consumers now have the ability to enjoy video content anytime, anywhere on their mobile devices. Streaming video requires much higher bandwidth compared to other online activities, so the rise of widespread high-speed internet access has eliminated a major barrier for the adoption of video on demand services. Leading streaming platforms are investing heavily in content localization and partnerships with mobile carriers to capitalize on these connectivity trends and reach new audiences outside of traditional markets. As long as worldwide broadband and 5G deployment continues its rapid trajectory, it will bring hundreds of millions of additional viewers within reach of online video services in the coming years.

Changing viewing habits of younger generations

Another key driver has been the changing media consumption patterns of younger audiences who have grown up with the internet. Millennials and generation Z are highly connected digitally and have much lower rates of traditional pay TV subscriptions compared to older consumers. They are comfortable navigating the online world and expect to be able to access all types of media on demand whenever and wherever they want. Streaming services provide this level of flexibility and ability to watch only the specific shows and movies that interest them the most. In particular, binge watching full seasons of a series has become a very popular pastime for younger viewers. As these digital natives enter their prime spending years, their viewing habits will have an outsized impact on the future of the entertainment industry. Media companies have taken note and are aggressively adapting their business models, launching new video streaming platforms with features that cater perfectly to these audiences who will drive future growth in the Video on Demand Service market.