Transactional Video-On-Demand Market

Global Transactional Video-On-Demand Market Size (2024 to 2032)

The global transactional video-on-demand Video market was valued at USD 12.29 billion in 2023. The global market is predicted to reach USD 13.17 billion in 2024 and USD 22.97 billion by 2032, growing at a CAGR of 7.2% during the forecast period.

Transactional video on demand allows users to pay for and watch a specific video or video collection (TVoD). Transactional video-on-demand services have become increasingly important as online or digital payments have become more popular. TVoD provides a convenient, cost-effective, and flexible media access solution with a pay-per-view option. The pay-per-view option in TVoD is gaining traction, especially among millennials, and will likely significantly impact the business. TVoD is becoming increasingly popular due to its features, which include a straightforward income-sharing scheme for video creators and an accurate evaluation of operational costs.

MARKET DRIVERS

Smartphones and tablets are gradually replacing desktop computers as the primary means of communication and content consumption. Furthermore, the rapid adoption of 4G services in developing countries and the emergence of more advanced technologies that make it easier for smartphone users to access the internet is expected to accelerate mobile internet diffusion in the coming years, propelling the global transactional video-on-demand market. Furthermore, pay-per-view and the trend of migrating from linear TV shows to video-on-demand would substantially impact the growth of the global transactional video-on-demand industry.

MARKET RESTRAINTS

Piracy and limited bandwidth in emerging nations are the two most significant impediments to expanding the global transactional video on demand. On the other hand, government attempts to expand internet capacity in emerging countries are expected to fix the problem and significantly promote the business.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Transactional Video-On-Demand Market Analysis By Access

During the forecast period, smartphones and tablets are expected to have a substantial market share. Furthermore, the market for smart TVs is predicted to expand fast over the forecast period.

Global Transactional Video-On-Demand Market Analysis By Content

The entertainment segment is predicted to dominate the TVoD market, while the movies and sports segment is expected to increase. Consumers are increasingly demanding creative films. During the predicted period, sports content is expected to rise significantly. Because the younger generation is more interested in sports material, market participants will likely emphasize live sports streaming more.

In the forecast period, kids, music, and other forms of entertainment, such as motivational films, documentaries, and stand-up comedy, are expected to grow in popularity. Consumers' preference for TVoD platforms is likely influenced by the time gap between theatrical release and availability on TVoD platforms and the reduced cost of digital rights.

Global Transactional Video-On-Demand Market Analysis By Availability

The term "electronic sell-through" refers to a media distribution system where users pay a one-time fee to watch any film or series. "Download to rent" is a procedure for purchasing TV on Demand. It primarily refers to the short-term digital rental of a film or other material to users for a fee.

REGIONAL ANALYSIS

North America plays a critical role in the global transactional video on demand sector due to the gradual shift of consumers from traditional to digital media. Because of the growing usage of smartphone devices and improved internet speeds, consumers may now access media material at any time and from any location. This factor will hold a significant impact on market expansion in North America. With headquarters in North America, Apple TV, Amazon.com, Inc., Netflix Inc., and Hulu are all well-known global entertainment service providers. This type of leading internet streaming service provider is expected to help the North American market grow.

Canada is expected to have the greatest CAGR in the following years. According to the Canadian Radio-Television and Telecommunications Commission Monitoring Report 2020, Internet-based video services are a rising component in Canada, accounting for around 63 percent of total television earnings.

During the projection period, Asia Pacific is expected to increase. The Chinese government's apparent preference for subscription-based models over advertising-based models will directly benefit market growth. The internet video business in China is anticipated to be dominated by Alibaba's Youku Tudou, Tencent Video, and Baidu's iQiyi. China is likely to control a significant portion of the regional market. The fastest-growing market for TVoD is likely to be India. To compete with local companies like Hotstar and Voot, international market giants like Netflix and Amazon focus more on generating specialized regional content.

Europe is projected to expand significantly during the projection period. The European Union has proposed modifying the Audiovisual Media Services Directive (AVMSD), which mandates a 30% share of European works for TV-on-demand services. According to the document, member states will also require TVoD services to assist with regional production operations.

The Middle East, Africa, and Latin America are expected to deliver promising growth prospects in the forecasted period. According to GSMA Intelligence's Mobile Internet Connectivity Report 2020, the Middle East and Africa have 44 percent social media penetration of the overall population. This demonstrates that mobile internet adoption and social media usage continue to rise in the region, which is projected to boost industry growth.

KEY PARTICIPANTS IN THE GLOBAL TRANSACTIONAL VIDEO-ON-DEMAND MARKET

The major companies operating in the global transactional video-on-demand market include Eros International (India), Iflix (Malaysia), Tencent (China), LeEco (China), Rakuten (Japan), Disney (US), Amazon (US), Apple Inc (US), Comcast Corp (US), Vivendi (France), Filmdoo (UK), Icflix (UAE), and Tving (South Korea).

RECENT HAPPENINGS IN THE GLOBAL TRANSACTIONAL VIDEO-ON-DEMAND MARKET

• Redbox, a well-known entertainment company, said today that it has agreed to expand Fremantle's free streaming service. The deal calls for adding Free Ad-Supported Television (FAST) channels to commence on December 1, 2021. These are BUZZR, The Price Is Right: The Barker Era, and the Baywatch channel.

• Brightcove and Monterosa have teamed to bring interactive video to media and sports organizations worldwide. By combining Brightcove's video platform with Monterosa Interaction Cloud, brands like ITV, Three UK, and ProSiebenSat.1 will be able to provide their viewers with seamless live and on-demand interactive video experiences that will improve engagement, retention, and monetization.

• NTT DOCOMO, INC., Japan's leading mobile operator, has chosen Limelight's EdgeXtend to expand its content business and increase user experiences for thousands of viewers across the country, according to Limelight Networks, Inc., a leading provider of content delivery and AppOps at the edge. DOCOMO can quickly improve customer content delivery by employing EdgeXtend to store content from its network of 13 services.

• According to Mobileum, "Japan's Rakuten Mobile will install its best-in-class Active Intelligence Platform, which includes telecom solutions for network security, roaming, and core network, testing and monitoring, risk management, and customer engagement and experience."

• Tencent announced on October 29 that its Hong Kong subsidiary Sixjoy, a wholly-owned subsidiary of Tencent, will pay 30 billion yen (USD 263 million) for a 6.86 percent stake in Kadokawa. Following the acquisition, the Chinese tech conglomerate will become Kadokawa's third-largest stakeholder. Tencent has made its largest-ever investment in a Japanese firm. The company will pay 6170 yen per share for 4.86 million Kadokawa shares, with the formal transaction occurring between November 15 and November 26.

• Vidio Dot Com, an Indonesian over-the-top (OTT) platform owned by the Indonesian conglomerate Emtek, announced a USD 150 million investment from private equity firm Affinity Equity Partners on Monday, marking the company's first external funding. The video stated that the deal gave it a pre-money valuation of USD 750 million.

DETAILED SEGMENTATION OF THE GLOBAL TRANSACTIONAL VIDEO-ON-DEMAND MARKET INCLUDED IN THIS REPORT

This research report on the global video-on-demand market has been segmented and sub-segmented based on access, content, availability, and region.

By Access

• OTT Streaming
• Desktops & Laptops
• Smartphones & Tablets
• Smart TVs
• Other Devices

By Content

• Entertainment
• Food
• Travel & Fashion
• Games & Sports
• Kids
• Others

By Availability

• Electronic Sell-Through
• Download to rent

By Region

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus