The video-on-demand (VOD) market is set to grow from $21.08 billion in 2013 to $45.25 billion in 2018, at a CAGR of 16.5%, says a study from MarketsandMarkets.
The Video On Demand Market By Solutions; By Delivery; By Applications; Global Advancements Market Forecasts And Analysis (2013-2018) report says the VOD market is being driven by user demand for high quality videos to any connected device. This has given operators a key competitive advantage in terms of consumer reach despite the various challenges involved such as diversified bit rates, operating systems, digital rights management (DRM) and multiple screen formats.
The analyst adds that as users’ TV experience is changing rapidly from traditional linear TV, over-the-top (OTT) viewers are surpassing IPTV viewers. VOD providers are thus consolidating their ground in a highly competitive market through mergers and acquisitions to build feature-rich solutions and attain better market visibility. It also says that the challenges occurring while delivering VOD can be overcome by combining on-demand content with live streaming events and other similar solutions.
The report also shows that North America is expected to be the biggest market in terms of revenue contribution, while the Asia Pacific (APAC) and Latin America are expected to experience increased market traction during the forecast period.