Video on Demand Market Size - By Revenue Model (Advertising, Hybrid, Subscription, Transactional), By Type (IPTV, OTT, Pay-Tv, VoD), By Application (Education & Training, Health & Fitness, Media & Entertainment) & Forecast, 2024 – 2032

Video on Demand Market Size

Video on Demand Market size was valued at USD 141.9 billion in 2023 and is expected to grow at a CAGR of over 15% between 2024 and 2032, due to the increasing penetration of high-speed internet globally. As more households and individuals gain access to reliable broadband and mobile internet connections, the barrier to streaming high-quality video content diminishes. This widespread internet access enables consumers to easily access VOD platforms on various devices such as smart TVs, laptops, tablets, and smartphones.
 

The convenience of streaming content on-demand, without the constraints of traditional broadcast schedules, appeals to modern consumer preferences for flexibility and personalized viewing experiences. Moreover, improved internet infrastructure supports seamless streaming experiences with higher resolutions and faster loading times, enhancing overall user satisfaction. Thus, the expansion of internet access plays a crucial role in expanding the potential audience base for VOD services and driving market growth.
 

For instance, in July 2022, Netflix and Microsoft announced a collaboration to provide ad tools and sales to bring ads to the streaming service. It was to introduce the Basic Standard Premium plan, a new advertising-supported plan. The new method was designed to attract new members from other countries and places where premium memberships are occasionally paid for.
 

Modern consumers increasingly value the flexibility and convenience offered by VOD platforms, where they can choose from a vast catalog of movies, TV shows, documentaries, and original content available at their fingertips. Unlike traditional TV, which relies on predetermined broadcast schedules, VOD services allow users to watch content whenever and wherever they desire, making it easier to fit entertainment into their busy lifestyles.
 

This shift is driven by changing demographics, particularly among younger audiences who are accustomed to consuming content through digital platforms and prefer the freedom to binge-watch entire seasons or discover new series at their own pace. As consumer behavior continues to evolve, VOD platforms adapt by expanding their content libraries, enhancing user interfaces, and introducing personalized recommendations to cater to diverse preferences and maximize engagement.
 

One of the major challenges facing VOD platforms is the high cost associated with acquiring content licenses. Securing rights to popular movies, TV shows, and exclusive programming can be prohibitively expensive, especially for smaller or newer players in the market. Content licensing costs vary depending on factors such as the popularity of the content, the duration of the license, and the geographic rights.
 

Major VOD platforms like Netflix and Amazon Prime Video invest billions annually in content acquisition to expand their libraries and retain subscribers. This competitive bidding environment often results in escalating prices for premium content, making it challenging for smaller platforms to compete on the same scale. Moreover, as the demand for high-quality, exclusive content intensifies, VOD providers face pressure to continually invest in new programming to attract and retain subscribers.
 

Video on Demand Market Trends

Emerging trends in the VOD industry include the rise of subscription bundling, where consumers access multiple streaming services through discounted packages. Interactive and immersive content formats, such as virtual reality (VR) and augmented reality (AR), are also gaining traction, enhancing viewer engagement and user experience. Adaptive bitrate streaming technologies optimize video quality based on available bandwidth, ensuring seamless playback across varying internet speeds. These trends reflect ongoing innovations aimed at meeting consumer expectations for personalized, high-quality entertainment experiences.
 

The video on demand market is evolving rapidly with several emerging trends shaping its trajectory. One prominent trend is the rise of subscription bundling and aggregation services. Consumers increasingly prefer accessing multiple streaming platforms through bundled subscription packages offered by telecom operators or third-party aggregators. These bundles provide cost savings and convenience by combining subscriptions to various VOD services, music streaming platforms, and other digital content providers into a single monthly payment.
 

This trend not only enhances consumer value but also reduces subscriber churn by offering a comprehensive entertainment solution that caters to diverse viewing preferences. Moreover, subscription bundling fosters strategic partnerships among VOD providers and telecommunications companies, driving customer acquisition and revenue growth through collaborative marketing initiatives and cross-promotional campaigns.
 

Another notable trend in the VOD market is the proliferation of interactive and immersive content experiences. Advances in virtual reality (VR), augmented reality (AR), and mixed reality (MR) technologies are transforming the way users engage with entertainment content. VOD platforms are increasingly experimenting with interactive storytelling formats, live virtual events, and personalized VR experiences to enhance viewer engagement and retention.
 

These immersive technologies enable users to interact with characters, explore virtual environments, and participate in interactive narratives, creating a more engaging and personalized viewing experience. As consumer demand for immersive content grows, VOD providers are investing in VR-compatible content libraries, developing innovative production techniques, and collaborating with technology partners to push the boundaries of entertainment delivery.
 

Video on Demand Market Analysis

Based on type, the market is divided into IPTV, OTT, Pay-Tv, VoD. The IPTV segment is expected to register a CAGR of 18% during the forecast period.
 

• The Internet Protocol Television (IPTV) segment represents a significant and growing component of the video on demand market, offering a seamless blend of live television and on-demand content delivered over IP networks. IPTV services are often bundled with broadband internet and telephone services, creating a comprehensive package that appeals to consumers seeking convenience and cost-efficiency.
   
• Major telecom operators and ISPs play a pivotal role in this segment, leveraging their infrastructure to deliver high-quality streaming experiences. IPTV platforms provide a wide range of content, including live TV channels, movies, series, and catch-up TV services, accessible across various devices such as smart TVs, tablets, and smartphones.
   
• The integration of VOD with live TV through IPTV services enables consumers to enjoy a hybrid viewing experience, where they can watch live broadcasts and access on-demand content from the same platform.
   

Based on application, the video on demand market is divided into education & training, health & fitness, media & entertainment. The media & entertainment segment is expected to dominate the global market with a revenue of over USD 450 billion in 2023.
 

• The media & entertainment segment of the market is a critical driver of growth, driven by increasing consumer demand for diverse and high-quality content. This segment includes a wide array of content types such as movies, TV shows, documentaries, sports, and live events.
   
• The proliferation of original programming by VOD platforms like Netflix, Amazon Prime Video, Disney+, and Hulu has redefined consumer expectations, placing a premium on exclusive and original content that is not available on traditional broadcast television. This has led to significant investments in content creation and acquisition, with platforms vying to produce blockbuster series and films that attract and retain subscribers. The convergence of VOD with social media and other digital platforms has also enhanced content discoverability and engagement, as users share recommendations and reviews across their networks.
   
• Additionally, advancements in AI and machine learning are enabling more personalized viewing experiences, with tailored content recommendations that cater to individual preferences and viewing habits. The ongoing innovation in content delivery, coupled with strategic partnerships and licensing agreements, ensures that the media & entertainment segment remains vibrant and competitive, continuously evolving to meet the dynamic demands of global audiences.
   

North America dominated the global video on demand market in 2023, accounting for a share of over 45%. North America is a leading market for Video on Demand (VOD), characterized by high consumer adoption and technological advancements. The region benefits from extensive broadband penetration and widespread access to high-speed internet, facilitating seamless streaming experiences across a variety of devices including smart TVs, gaming consoles, and mobile devices. Major players such as Netflix, Amazon Prime Video, and Disney+ dominate the market with extensive content libraries that cater to diverse audience preferences.
 

Original content production is a significant driver in North America, with platforms investing heavily in exclusive shows, movies, and documentaries to attract and retain subscribers. The competitive landscape encourages continuous innovation in user interface design, content recommendation algorithms, and viewer engagement strategies.
 

The United States is the largest and most mature market for Video on Demand (VOD), driven by high consumer adoption, extensive content libraries, and continuous technological innovation. Major players like Netflix, Amazon Prime Video, Disney+, and Hulu dominate the landscape with vast selections of movies, TV shows, documentaries, and original productions. The U.S. market is characterized by significant investment in original content creation, with platforms producing exclusive series and films to attract and retain subscribers. Additionally, the competitive environment fosters advancements in streaming technology, such as high-definition and 4K streaming, as well as personalized content recommendations powered by artificial intelligence.
 

For instance, in June 2022, Over-the-top (OTT) platform Amazon Prime Video has teamed up with US-based entertainment giant AMC Networks to provide its content on Prime Video Channels in India. Additionally, as part of the arrangement, Amazon Prime Video Channels in India provide AMC's streaming service Acorn TV and the ad-free AMC+ subscription service on a subscription basis.
 

Japan's video on demand market is characterized by a strong preference for high-quality content and advanced technological infrastructure. Japanese consumers have a high affinity for on-demand services, driven by a culture that values convenience and technological innovation. Major players in the Japanese market include international giants like Netflix and Amazon Prime Video, as well as local platforms such as Hulu Japan and U-NEXT.
 

These platforms compete by offering a mix of international content, local dramas, anime, and exclusive Japanese productions. The high penetration of smart devices and high-speed internet in Japan supports seamless streaming experiences, making mobile accessibility a key factor in market growth.
 

South Korea's video on demand market is driven by a tech-savvy population and high smartphone penetration. The country is known for its advanced digital infrastructure, including widespread high-speed internet and 5G networks, which facilitate high-quality streaming on multiple devices. Key players in the South Korean video on demand market include global platforms like Netflix and Disney+, alongside local services such as Wavve and TVING. South Korean VOD platforms are particularly noted for their strong focus on local content, including K-dramas, variety shows, and movies, which are not only popular domestically but also enjoy a significant international following.
 

The success of South Korean content on global platforms has further boosted the visibility and demand for locally produced content. Additionally, collaborations between VOD platforms and South Korean entertainment companies enhance content offerings and attract a diverse audience.
 

China's VOD market is one of the largest and fastest-growing globally, driven by a massive population, increasing internet penetration, and a rapidly expanding middle class. Major domestic players like iQiyi, Tencent Video, and Youku dominate the market, benefiting from strong local content production and strategic partnerships with Chinese studios. These platforms offer a wide range of content, including TV dramas, movies, variety shows, and exclusive original productions tailored to Chinese audiences.
 

China's regulatory environment, which includes stringent content censorship and licensing requirements, influences the video on demand market dynamics. To comply with these regulations, domestic VOD platforms focus on producing and acquiring content that aligns with government guidelines while also meeting consumer demand. The growth of mobile internet usage and the popularity of short-form video content on platforms like TikTok (Douyin) further contribute to the diversification of the market in China.
 

Video on Demand Market Share

Amazon.com, Inc and Netflix, Inc. held a significant share of over 65% in the video on demand industry in 2023. Amazon.com, Inc., through its Amazon Prime Video service, holds a significant share in the VOD market due to several strategic advantages and initiatives. First, Amazon Prime Video is part of the broader Amazon Prime membership, which includes benefits such as free shipping, access to music streaming, and exclusive deals. This bundling strategy provides a compelling value proposition that attracts and retains a large subscriber base.
 

Additionally, Amazon’s extensive financial resources enable significant investment in original content production and exclusive licensing agreements. High-profile original series such as "The Marvelous Mrs. Maisel" and "The Boys" have garnered critical acclaim and a loyal audience. Amazon’s global logistics and technology infrastructure also support seamless content delivery across various devices and regions, enhancing the user experience. Furthermore, Amazon leverages data analytics and artificial intelligence to offer personalized content recommendations, improving viewer engagement and satisfaction.
 

Netflix, Inc. holds a dominant share in the video on demand market due to its pioneering role and continuous innovation in content delivery and production. As one of the first companies to introduce streaming services, Netflix capitalized on early market entry to establish a vast subscriber base globally. The company's aggressive investment in original content has been a key driver of its success.
 

Blockbuster shows like "Stranger Things," "The Crown," and "Bridgerton" have not only attracted millions of viewers but also set high standards for quality and storytelling in the market. Netflix’s data-driven approach to content creation and recommendation algorithms ensures that viewers receive highly personalized content suggestions, increasing engagement and retention. The company’s extensive global reach, supported by localized content and multi-language options, enables it to cater to diverse audiences worldwide.
 

Video on Demand Market Companies

Major players operating in the video on demand industry are:

• Amazon.com, Inc.
• Netflix, Inc.
• The Walt Disney Company (Hulu, Hotstar)
• HBO
• Apple, Inc.
• Google LLC
• Microsoft Corporation
   

Video on Demand Industry News

• In January 2023, A multi-platform strategic marketing alliance and in-season streaming rights for FOX's enormous schedule have been revealed, along with a multi-year content agreement between FOX Entertainment and Hulu. The terms of the arrangement include that all FOX primetime entertainment content, including Family Guy, The Cleaning Lady, The Masked Singer, and Next Level Chef, would be available for streaming on Hulu the day following its linear transmission. To match the messaging for FOX content's live and on-demand viewing, the arrangement also involves a significant alliance in which FOX and Hulu branding will cohabit across all FOX-owned and external marketing touchpoints.
   
• In November 2022, the new streaming service AFN Now was introduced by the American Forces Network (AFN). When deployed overseas, military personnel, their families, and retirees can enjoy highly regarded AFN television series on their usual devices at any time and from any location with the AFN Now app. The Defense Media Activity (DMA) is inviting authorized viewers to download the new live-streaming and video-on-demand app right away.
   

The video on demand market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Revenue Model

• Advertising
• Hybrid
• Subscription
• Transactional

Market, By Type

• IPTV
• OTT
• Pay-Tv VoD

Market, By Application

• Education & training
• Health & fitness
• Media & entertainment

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA