Convenience drives revenue, as the video-on-demand market is proving. Driven by viewers’ desire to watch when they want, the VOD market is growing at a rapid clip and generated $49 billion in worldwide revenue last year. That’s up from $45 billion in 2014, according to Future Market Insights. The research firm predicted VOD revenue will hit $108.6 billion within 10 years.
The biggest segment of the market is North America, with nearly $20 billion in revenue last year. In general, animation plays a large role in the boon in VOD revenue, with shows like “Curious George” being a powerful player globally, the report said. Future Market Insights said that VOD refers to technology that lets programming be delivered directly to a set-top box, computer, smart TV mobile pone or cable network on demand.
Nielsen also found that VOD continues to increase in usage around the world. About 65% of global respondents in 61 countries watch VOD programming, Nielsen said, referring to either multi-channel provider VOD or streaming VOD.
Cable network SVOD services garnered a 31.2% share of time spent with cable VOD in the first three quarter of 2015, up from a 30% share the year before, comScore said in its recent report on viewing trends. “Most of the growth is happening via subscription services such as HBO and Showtime,” comScore said.
The comScore report also highlighted the key role smartphones will continue to play in all digital activities. Time spent on smartphone apps earned a 47% share, and as mobile viewing rises, it will become the majority of “digital consumption time.”