Consumers around the globe are tuning in to digital video in increasing numbers. According to an April 2016 report from Nielsen, 65% of internet users worldwide watched some type of video-on-demand (VOD), including both short-form and long-form content.
This year, 186.9 million people in the U.S. will watch video through an app or website like Hulu or YouTube, eMarketer forecasts. And overall, video-on-demand (VOD) usage among U.S. cable subscribers has grown.
Revenues from the global video-on-demand (VoD) market are expected to top $263 billion by 2016 — that’s a 27% increase over the $207 billion the industry generated in 2014, driven by rapid consumer adoption and expanding Internet penetration in emerging markets.
Worldwide video on demand (VOD) rentals from over the top (OTT) and pay TV operators, electronic sell-through (EST), and DVD or Blu-ray disc sales are expected to increase by 40 percent from 2013 to 2019 — growing from $30.6 billion in 2013 to over $43 billion by 2019.
Physical media sales will continue its decline, while OTT VOD services and ad-based viewing take significant market share from combined physical purchases and EST.
Globally, the audiovisual market — including linear TV, video on physical devices and video on demand — continues to grow and is expected to generate revenue of EUR 408.6 billion in 2013.
The industry reached a major milestone this year as revenue from video on demand — including OTT and all other platforms — overtook revenue from video on physical devices EUR 18.4 billion as compared with EUR 17.1 billion respectively.
The video market on fixed and mobile networks worldwide will grow by an average 3.2% per year from 2013 to 2025 – which includes average 2% growth for live TV and 14% annual growth for on-demand service. The market’s growth will be much lower in developed markets, however.
This means that in Europe’s top five markets EU-5 average annual growth will stand at 1.6% from 2013 to 2025, with the live TV market including broadcasters’ catch-up TV services in decline by 0.7%, while on-demand services experience an average annual increase of 18.5%.
The amount of time TV viewers in the U.S. spend watching digital video is rising fast, especially as their choices for where and what to watch continue to expand.
Live TV remained the most common type of content that TV viewers watched during primetime, with 67% doing so. But of the other viewing options available, streaming content and online video won out over DVR content and video-on-demand (VOD).