Video-on-demand (VOD) Market Expected to Reach $786.10 Billion by 2032

The Video on Demand market is on the rise, with a projected valuation of US$ 786.10 billion by 2032. Big players like Netflix and Disney+ are leading the way, offering a wide range of content to meet consumer demands and preferences. This surge in the industry opens up new opportunities for innovation and digital entertainment engagement.

As of 2023, the global video-on-demand (VOD) market was valued at US$ 240.40 billion and is expected to continue its growth to reach the projected valuation by 2032, with a compound annual growth rate (CAGR) of 14.07% during the forecast period from 2024-2032. This growth is driven by changing consumer preferences, technological advancements, and fierce market competition.

We’re seeing rapid expansion and evolving consumer behaviors in the VoD landscape. Apple TV+ has shown impressive growth in subscriber numbers, indicating a strong market presence and rising consumer interest. Local services like Movistar+ in Spain and Kayo in Australia are tailoring their content offerings to attract new subscribers, particularly in sports and reality shows.

However, the market is saturating in some regions, with 95% of U.S. households already subscribed to at least one streaming service as of Q3 2024. To keep the momentum going, future growth may rely more on international markets and innovative service offerings.

One key trend in the VoD market is the shift towards ad-supported models. Ad-supported video on demand (AVoD) is gaining traction, with major players like Prime Video introducing ad-supported tiers. Price sensitivity is crucial, with households in Australia and Germany showing increased cancellations as they seek to save money, emphasizing the need for a balance between pricing and content quality.

Content strategies play a vital role in engaging viewers in the streaming wars. Platforms are focusing on diverse strategies to keep viewers hooked, such as Disney+ exploring ‘always on’ programming to increase daily engagement. Local content and sports are driving subscriber growth, with services like Movistar+ and Kayo witnessing significant increases in new paid subscribers due to their localized content offerings.

The streaming industry is also experiencing consolidation, with companies looking to merge and create larger entities to stay competitive. Potential mergers like Warner Bros. Discovery with Paramount are on the table to consolidate content libraries and offer more competitive services. In addition, many streaming services are shifting their focus from subscriber growth to profitability in order to ensure long-term sustainability in the market.