The video on demand (VOD) industry has been forecast to increase at a compound annual growth rate (CAGR) of 16.5% over the next five years, increasing from a value of $21.08 billion in 2013 to reach a total of $45.25 billion in 2018.
Key factors driving growth within the market include reaching audiences on any device, delivering best possible viewer experience, enabling time-shifting view, and unmatched scalability.
VOD solutions helps the viewers to reach any connected device, offering a key competitive advantage in terms of consumer reach despite of various challenges involved such as diversified bit rates, operating systems, digital rights management (DRM) and multiple screen formats
Video on Demand is considered to be an interactive technology that enables the subscribers to view programming in real-time and even download programs to watch them later.
VOD service is provided by various big and small service providers comprising of those who offer triple-play service. The pay-tv operators have largely improved on their revenues by adopting VOD in their product portfolio.
Educational institutions, hotel industry, and hospitals are widely embracing VOD service as it helps in enhancement of their presentations, improvement of patient experience of care, and collecting information to manage the patient's pain. In the coming years, VOD is likely to become common as Fiber-to-the-Home (FTTH) services.
As customers want to acquire large number of programs, they demand for high quality videos and this is where an emergence of OTT and IPTV occur. Therefore, TV no longer considers itself a push industry, because viewers are now pulling the content they require.
As the TV experience is changing rapidly from a traditional linear TV, OTT viewers are surpassing IPTV viewers. The VOD providers are consolidating their grounds in the highly competitive market through mergers and acquisitions to build feature-rich solutions and attain better market visibility.
For more information on the video on demand industry, see the latest research: Video on Demand Market
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