Video on Demand Market

Market Definition

The market encompasses digital streaming services that allow users to access and consume video content at their convenience. Content is delivered through over-the-top (OTT) platforms, internet protocol television (IPTV), and cable-based systems, utilizing cloud-based storage and adaptive bitrate streaming to optimize playback quality.

VOD services use content licensing, digital rights management (DRM), and data compression techniques to ensure efficient delivery. Applications include entertainment, education, fitness training, and corporate communications, with formats ranging from subscription-based (SVOD) and transactional (TVOD) to ad-supported (AVOD) models. Advanced algorithms personalize recommendations, enhancing user experience and engagement across various devices.

Video on Demand Market Overview

The global video on demand market size was valued at USD 127.67 billion in 2023 and is projected to grow from USD 144.48 billion in 2024 to USD 369.83 billion by 2031, exhibiting a CAGR of 14.37% during the forecast period.

The expansion of high-speed internet infrastructure and widespread deployment of 5G networks are enabling seamless streaming experiences, driving the market.

Additionally, the surge in subscription-based and ad-supported models is enhancing accessibility, catering to diverse consumer preferences. The rising popularity of live streaming and interactive content is further fueling the market, as platforms invest in real-time engagement features to attract and retain audiences.

Major companies operating in the video on demand industry are NETFLIX, Amazon.com, Inc., Disney, Warner Bros. Discovery, Inc., Hulu, LLC, Apple Inc., Paramount, NBCUNIVERSAL MEDIA, LLC., FOX, Rakuten Group, Inc., Eros Media World, Zee Entertainment Enterprises Limited, Tencent Holdings Ltd., iQIYI, Inc., and Fandango Media, LLC.

The expansion of high-speed internet infrastructure and widespread deployment of 5G networks are accelerating the growth of the market. Faster connectivity enables uninterrupted streaming of high-definition and 4K content, improving the overall viewing experience.

Regions with increasing broadband penetration are registering higher adoption rates of digital streaming services, reducing dependency on traditional cable TV. Telecom providers and streaming platforms are leveraging 5G capabilities to offer seamless mobile streaming, supporting on-the-go content consumption.

Enhanced network efficiency and reduced latency are fueling the demand for VOD platforms, driving the market in developed and emerging economies.

• The 5G Americas 2024 report highlighted significant growth in 5G connections in 2023, reaching 1.76 billion globally with an increase of 700 million. Presently, global IoT subscriptions total 3.1 billion, alongside 6.6 billion smartphone subscriptions. Projections indicate that by 2026, IoT subscriptions will rise to 4.5 billion, while smartphone subscriptions are expected to grow to 7.4 billion. This expanding connectivity ecosystem is driving the demand for mobile and smart device-based VOD consumption, further accelerating market expansion.

Key Highlights:

1. The video on demand industry size was valued at USD 127.67 billion in 2023.
2. The market is projected to grow at a CAGR of 14.37% from 2024 to 2031.
3. Asia Pacific held a market share of 35.77% in 2023, with a valuation of USD 45.67 billion.
4. The pay TV segment garnered USD 53.35 billion in revenue in 2023.
5. The subscription Video on Demand (SVoD) segment is expected to reach USD 142.39 billion by 2031.
6. The handheld segment secured the largest revenue share of 57.86% in 2023.
7. The sports segment is poised for a robust CAGR of 14.62% through the forecast period.
8. The market in Europe is anticipated to grow at a CAGR of 14.29% during the forecast period.

Market Driver

"Surge in Subscription-based and Ad-supported Models"

The video on demand market is driven by the increasing adoption of Subscription Video on Demand (SVOD) and Advertising-Based Video on Demand (AVOD) models. Consumers are shifting toward paid subscriptions for premium, ad-free content, while cost-conscious users are embracing AVOD platforms offering free streaming with targeted advertisements.

Companies such as Netflix, Disney+, and Amazon Prime Video continue to expand their SVOD services, while AVOD platforms like Tubi and Pluto TV attract large audiences through personalized advertising strategies. This diversification of revenue models strengthens market growth, allowing platforms to cater to varied consumer preferences and engagement patterns.

• In February 2025, NBCUniversal revealed plans to introduce a video-centric subscription service in the fourth quarter. Designed as a mobile-first platform, it will offer both short- and long-form video content, along with original programming and podcasts from the NBC News Group. While a subscription will be required to access video content on the platform, select content will be available for free through other channels. The platform will feature videos from various NBCUniversal sources, alongside exclusive programming created specifically for the service.

Market Challenge

"Content Piracy and Copyright Infringement"

Challenges in the video on demand VoD market, such as content piracy and copyright infringement, undermine revenue streams and affect profitability. Unauthorized distribution of premium content through illegal streaming platforms reduces subscriber growth and impacts content creators.

Companies are investing in advanced digital rights management (DRM) technologies, AI-driven anti-piracy tools, and blockchain-based content authentication.

Additionally, streaming platforms are forming strategic partnerships with law enforcement agencies and regulatory bodies to enforce stricter anti-piracy measures. Companies aim to safeguard intellectual property and sustain market growth by enhancing security protocols and implementing real-time monitoring systems.

Market Trend

"Rising Popularity of Live Streaming and Interactive Content"

The video on demand market is registering significant growth, due to the increasing popularity of live streaming and interactive content. Platforms such as Twitch, YouTube Live, and Facebook Watch provide real-time engagement opportunities, attracting audiences beyond traditional pre-recorded content.

Live sports events, concerts, shopping channels and gaming broadcasts are driving consumer interest, with streaming services securing exclusive broadcasting rights to expand their user base.

Interactive features, including audience polls, chat functions, and virtual watch parties, enhance viewer participation, increasing retention rates. This evolving content landscape is creating new monetization opportunities for platforms and accelerating market expansion.

• In April 2024, Amazon Live launched an interactive and shoppable channel on Prime Video. This new FAST Channel allows customers to seamlessly browse, shop, and interact with content on their TV screens using their mobile devices. In 2023, over 1 billion viewers in the U.S. and India engaged with Amazon Live streams across desktop, mobile, and Fire TV. U.S. customers now have more opportunities to shop with Amazon Live creators, brands, and celebrities. The channel also integrates Amazon’s “shop the show” technology, enhancing the shopping experience by enabling real-time engagement while watching content.

Video on Demand Market Report Snapshot

Market Segmentation:

• By Solution (Pay TV, OTT Services, and Internet Protocol Television (IPTV)): The pay TV segment earned USD 53.35 billion in 2023, due to its extensive content libraries, exclusive premium programming, and integration of on-demand services with traditional broadcast channels, providing a seamless and diverse viewing experience for subscribers.
• By Model (Subscription Video on Demand (SVoD), Transactional Video on Demand (TVoD), and Advertisement Based Video on Demand (AVoD)): The subscription Video on Demand (SVoD) segment held 38.45% share of the market in 2023, due to its extensive content libraries, exclusive original programming, and flexible pricing models, which enhance user engagement and drive long-term customer retention.
• By Device (Handheld, PC/Laptop): The handheld segment is projected to reach USD 213.47 billion by 2031, owing to the widespread adoption of smartphones and tablets, driven by increasing mobile data penetration, on-the-go content consumption preferences, and continuous advancements in high-resolution displays and streaming capabilities.
• By Content (Movies, Sports, Fitness, and Others): The sports segment is poised for significant growth at a CAGR of 14.62% through the forecast period, due to the rising demand for live streaming of major sporting events, exclusive broadcasting rights, and increased consumer engagement through interactive features, driving high subscription rates and ad revenue for streaming platforms.

Video on Demand Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Asia Pacific accounted for a video on demand market share of around 35.77% in 2023, with a valuation of USD 45.67 billion. The rapid expansion of high-speed internet and broadband infrastructure is a key factor driving the market in Asia Pacific.

Governments and private telecom providers are heavily investing in fiber-optic networks, 5G deployment, and affordable broadband solutions to enhance digital connectivity.

Faster internet speeds reduce buffering issues, enabling seamless high-definition and ultra-HD content consumption. The increasing availability of cost-effective broadband plans further accelerates VOD adoption across urban and rural markets.

• According to the Global Data report from November 2024, mobile broadband services revenue in Asia-Pacific (APAC) is projected to expand at a CAGR of 5.2%, rising from USD 229.6 billion in 2024 to USD 296.2 billion by 2029. Japan aims to extend 5G coverage to 97% of its population by 2025, with further expansion reaching 99% by 2030.

Additionally, the rising global appeal of K-dramas, anime, and Asian pop culture is fueling the demand for VOD platforms originating from Asia Pacific. Services such as Netflix, Rakuten, and iQIYI are expanding their Asian content libraries to attract international audiences.

• In June 2024, Rakuten Group, Inc. introduced "Rakuten PLAY," a video streaming guide designed to aggregate and highlight content from Rakuten TV and other major VOD platforms in Japan. This launch aims to enhance the entertainment experience by offering a more seamless and convenient way for users to explore and access streaming content.

Furthermore, the success of South Korean dramas and Japanese anime is driving higher viewership and subscriptions. Exclusive licensing agreements and co-productions with major Asian studios are further amplifying the region’s influence in the global entertainment market, strengthening revenue opportunities for VOD platforms.

The video on demand industry in Europe is poised for significant growth at a robust CAGR of 14.29% over the forecast period. The shift toward hybrid monetization models, including subscription-based (SVOD), ad-supported (AVOD), and transactional (TVOD) services, is fueling the market in Europe.

With rising price sensitivity among consumers, platforms such as Disney+ and Netflix have introduced ad-supported tiers to attract cost-conscious users. Meanwhile, broadcasters like BBC iPlayer and France Télévisions integrate free streaming with premium subscription options.

This flexible approach allows VOD platforms to cater to diverse consumer preferences, optimizing revenue generation while expanding their user base across European markets.

In addition, the increasing demand for live sports streaming is driving the market in Europe. Major sports leagues such as the Premier League, UEFA Champions League, and Formula 1 are shifting toward exclusive streaming partnerships.

Platforms such as DAZN, Amazon Prime Video, and Viaplay have secured broadcasting rights, providing seamless live sports coverage across multiple European countries. This trend is reshaping consumer viewing habits, encouraging more users to subscribe to sports-focused VOD services, thereby fueling the market.

Regulatory Frameworks

• The VOD market in the U.S. is primarily regulated by the Federal Communications Commission (FCC), which oversees interstate and international communications. While the FCC does not impose specific content regulations on VOD services, it enforces laws related to broadcasting standards and consumer protection. Additionally, the Federal Trade Commission (FTC) addresses issues concerning advertising and consumer rights. VOD providers must also comply with the Digital Millennium Copyright Act (DMCA), which protects copyrighted works in the digital environment.
• In Europe, the Audiovisual Media Services Directive (AVMSD) governs VOD platforms, mandating a 30% European content quota, advertising restrictions, and accessibility requirements for disabled users. VOD providers must ensure child protection measures and comply with local cultural and linguistic regulations while adhering to cross-border distribution laws within EU member states.
• Japan's VOD industry is regulated by the Ministry of Internal Affairs and Communications (MIC), which oversees broadcasting and telecommunications. While there is no specific legislation for VOD services, providers must adhere to general broadcasting standards and content guidelines to ensure compliance with national policies.
• The National Radio and Television Administration (NRTA) regulates VOD services in China, enforcing strict content censorship to align with socialist values and national interests. Foreign VOD platforms face significant restrictions and must partner with local companies to operate within the country.

Competitive Landscape:

The video on demand industry is characterized by several market players that are expanding their streaming platforms to reach a wider audience, contributing to the growth of the market.

Companies enhance accessibility and user engagement by introducing their services on additional operating systems and digital ecosystems. This strategic expansion enables platforms to tap into new customer segments, increase subscription rates, and strengthen their market presence.

Additionally, broadening platform compatibility allows providers to remain competitive in a rapidly evolving industry, fostering greater adoption and driving overall market growth. These initiatives align with the industry's push toward seamless content delivery, ensuring a more inclusive and engaging viewing experience.

• In February 2025, Apple introduced the Apple TV+ app for Android smartphones, making it accessible through the Google Play Store as a free download. Previously limited to Apple's ecosystem and select third-party TV platforms such as Roku, the streaming service launched in 2019 is now available to a broader audience.

List of Key Companies in Video on Demand Market:

• NETFLIX
• com, Inc.
• Disney
• Warner Bros. Discovery, Inc
• Hulu, LLC
• Apple Inc.
• Paramount
• NBCUNIVERSAL MEDIA, LLC.
• FOX
• Rakuten Group, Inc.
• Eros Media World
• Zee Entertainment Enterprises Limited
• Tencent Holdings Ltd.
• iQIYI, Inc.
• Fandango Media, LLC

Recent Developments (Partnerships/Agreements/ Product Launch)

• In February 2025, Fox Corporation announced plans to introduce a stand-alone subscription-based streaming service by the end of the year. Despite previously avoiding significant investments in premium content for broadband audiences, the company now recognizes new opportunities in the streaming market and is preparing to expand its digital offerings.
• In February 2025, Paramount Global entered into a new multi-year partnership with Nielsen, a global leader in audience measurement, data, and analytics, with the agreement taking effect immediately. The collaboration covers audience measurement across all Paramount platforms, including national and local broadcasts, cable networks, and streaming services such as Paramount+ and Pluto TV. As part of the deal, Paramount has adopted new Nielsen services, including Advanced Audiences, Big Data + Panel, Ad-Supported Streaming Platform Ratings, Nielsen ONE Ads for Connected TV, and National Out-of-Home expansion, enhancing its advertising, programming, and licensing strategies.
• In February 2025, Netflix (NFLX) announced plans to integrate video podcasts into its streaming platform as part of its strategy to expand content offerings and drive future growth. The company continues to explore new content formats, having previously ventured into live events and sports, including NFL games, Formula 1 races, weekly wrestling programs, and unique events like a hot dog eating contest, demonstrating its adaptability in the evolving streaming landscape.
• In December 2024, Warner Bros. Discovery, Inc. introduced a new corporate structure aimed at increasing strategic flexibility and maximizing shareholder value. The company now operates under two distinct divisions: Global Linear Networks, managing top-tier television networks with news, sports, and entertainment programming, and Streaming & Studios, overseeing global streaming platforms and renowned film & entertainment studios. This restructuring is designed to enhance operational clarity and drive growth in each segment.
• In September 2024, LG Electronics introduced a new VOD service for LG TVs across the UK, Germany, Spain, and Italy. LG collaborated with Rakuten for the launch, offering over 6,000 titles in each of these four European markets, enhancing content accessibility for viewers.