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The digital video content market is estimated to grow at a CAGR of 14.84% between 2022 and 2027. The size of the market is forecast to increase by USD 464.62 billion. The growth of the market depends on several factors, including the growing number of partnerships and acquisitions in the VOD market, the increasing penetration of mobile computing devices, and the growing investment in communication network infrastructure in developing countries.
This report extensively covers market segmentation by deployment (pay TV and OTT), application (smartphones, desktop and laptop, smart TV, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global digital video content market as a part of the global media and entertainment market within the global media and entertainment sector. The parent global media and entertainment market covers companies offering products, services, and solutions in advertising, broadcasting, cable and satellite, publishing, movies and entertainment, interactive home entertainment, and interactive media and services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The Increasing penetration of mobile computing devices is notably driving the market growth, although factors such as the availability of pirated video content on online platforms may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Digital Video Content Market Driver
The increasing penetration of mobile computing devices is a major factor driving the global digital video content market share growth. The increasing penetration of mobile computing devices such as smartphones, laptops, and tablets is driven by multiple factors. These factors include growing digital literacy, rising per capita income, availability of low-cost smartphones, investments in communication network infrastructure, and increasing Internet penetration. According to Technavio, global smartphone shipments in 2018 were recorded at 1,585.50 million units, which are expected to reach 1655.00 million units by 2023.
This increasing penetration of mobile computing devices positively impacts all forms of OTT services. This is because almost all the market vendors in SVOD, AVOD, and TVOD formats, such as Netflix, Amazon.com, and AT&T, offer mobile apps. These services were initially offered by vendors through websites. However, the growing penetration of mobile devices encouraged market vendors to develop mobile apps for streaming. Due to such reasons, the demand for digital video content will continue to grow in the forecast period.
Significant Digital Video Content Market Trend
The implementation of AI by OTT service providers is another factor supporting the global digital video content market share growth. Many OTT service providers are implementing advanced technologies such as AI to improve customer experience and expand their customer base. AI is implemented into multiple aspects, starting from creation and production to postproduction, marketing, and advertisement and distribution. Basically, the AI algorithm analyzes the data of multiple users regarding genres of media watched, most-watched media content, most liked media content, and others. Based on this analysis, OTT platforms automatically recommend content to users. This allows users to navigate easily and find relevant content.
Therefore, OTT service providers such as Netflix and Amazon.com are implementing AI across their OTT platforms to increase customer satisfaction. Personalization is one of the major factors to gain traction in this market. OTT players such as Netflix and Amazon.com create promos targeted at specific consumers based on their past preferences. By using AI, a viewer’s preference can be recognized, and an advertisement relevant to that preference can be used. Therefore, this will significantly aid in the growth of the market during the forecast period.
Major Digital Video Content Market Challenge
The availability of pirated video content on online platforms will be a major challenge for the global digital video content market share growth. Users can download digital video content using torrent files with the help of software such as BitTorrent. The use of services such as BitTorrent is illegal, as the content shared through it is mostly copyrighted, which makes it illegal to share. Users can download any TV show, movie, documentary, and video through these torrent files free of cost. This eliminates the need for a subscription to video streaming services. Torrents offer a single source to download all such content.
In addition, the content shared through torrents is mostly ad-free, which is an advantage over AVOD streaming services. Essentially, several users prefer to use torrents and do not subscribe to these services, which is a significant challenge to the growth of the global digital video content market. The growth of the global digital video content market is hindered by the growing market of video piracy.
Key Digital Video Content Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Digital Video Content Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABC- The company offers digital video content which includes vlogs, animated graphics interchange format, live videos, recorded presentations, and webinars.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the Pay TV segment will be significant during the forecast period. The growth of the market is driven by the shift of customers from cable TV to satellite TV. This is mainly observed in emerging countries such as India, Indonesia, and Malaysia. The major reason for this shift is the reduced network infrastructure cost due to the use of microwave signals for transmission, which minimizes the need for cables. Government regulations in many countries are also making people shift to satellite TV connections. This not only helps government and market vendors to offer an improved broadcasting infrastructure but also provides efficient control over broadcasting. Hence, due to these factors, there is significant adoption of Pay-TV subscriptions, which is expected to drive the growth of the market in focus during the forecast period.
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The Pay TV segment was valued at USD 142.88 billion in 2017 and continue to grow by 2021. Pay-TV is a type of digital video content delivery method where the customer is required to have a traditional cable or satellite dish to access content offered by the service provider. It is further divided into subscription-based Pay-TV and on-demand Pay-TV. The growth of the global Pay-TV market is driven by the increasing demand for IPTV, which is a type of content delivery method where the Internet is used to deliver TV programs that are either live or on-demand. IPTV is often confused with OTT as the content in both is delivered through the Internet. However, IPTV is delivered over the service provider's own infrastructure (hardware/equipment), whereas OTT is delivered via the public Internet. Such factors will increase the market during the forecast period.
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North America is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The AVOD segment is expected to significantly drive the growth of the digital video content market in the region. AVOD allows users to log in for free and stream videos. However, the content offered through this service is ad-supported. AVOD is beneficial to all the stakeholders in the value chain. Consumers get free access to digital video content, whereas content providers generate revenue from companies that want to feature their ads. Advertising companies get access to customers and can implement target marketing. Hence, AVOD subscription is witnessing significant growth in the region. Several vendors are trying to enter this market, which is expected to drive the growth of the global digital video content market. Hence, due to the above factors, the total subscriber base for OTT services is rising significantly in the region, which will drive the growth of the market.
In 2020, COVID-19 impacted the regional digital video content market. With the imposition of lockdowns in 2020, the digital video content market experienced growth, as most people stayed at home and Internet penetration increased significantly. Government officials also used digital platforms to spread awareness about the pandemic. Many industries, such as automotive and retail, invested in digital video content to gain traction. North America's digital video content market will likely experience high growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Digital Video Content Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.84% |
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Market growth 2023-2027 |
USD 464.62 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
14.6 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 43% |
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Key countries |
US, China, India, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Amazon.com Inc., Apple Inc., AT and T Inc., Chicken Soup for the Soul LLC, Comcast Corp., Lions Gate Entertainment Corp., Meta Platforms Inc., Netflix Inc., One Day Video Ltd., Roku Inc., Snap Inc., Sony Group Corp., Stir Fry Content Kitchen, The Walt Disney Co., Twitter Inc., Verizon Communications Inc., Viacom18 Media Pvt Ltd., Walmart Inc., and Youku Tudou Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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