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Video on Demand Market Share

Report ID: GMI4676
Published Date: Jul 2024
Report Format: PDF

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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

Authors: Suraj Gujar, Deeksha Vishwakarma

Frequently Asked Questions (FAQ) :

The market size of video-on-demand reached USD 141.9 billion in 2023 and is set to record a CAGR of over 15% between 2024 and 2032, favored by the increasing penetration of high-speed internet globally, in consort with the convenience of streaming content on-demand.

The media & entertainment segment is expected to record a revenue of over USD 450 billion in 2023, driven by increasing consumer demand for diverse and high-quality content, such as movies, TV shows, documentaries, sports, and live events.

North America dominated the global market in 2023, accounting for a share of over 45%, characterized by extensive broadband penetration and widespread access to high-speed internet, facilitating seamless streaming experiences across smart TVs, gaming consoles, and mobile devices.

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