Video services refer to video on demand (VOD) and video streaming services offered by digital content providers. VOD services allow users to access video content on demand either through streaming services or over-the-top (OTT) video services. The revenue is generated from the fee earned by VOD service providers through advertisements, subscriptions, and download to own (DTO) services. The global market for video services is affected by factors like the extensive adoption of free-to-view online video streaming. Since free internet TV services are available in several regions through a public network, the revenue-generating a capacity of paid-service vendors is greatly hampered. As a result, these vendors have been compelled to include additional features and customization services to attract customers and retain their customer base. Online video streaming websites like Hulu, Netflix, and YouTube in the US and the UK are very popular across geographies as they allow viewers to stream videos and content for free, without any time and location barriers. According to the research carried out by Technavio’s market research analysts, the global market for video services will experience profound growth during the estimated period and will post an impressive CAGR of more than 24% by 2020.
In terms of geography, the Americas is estimated to retain its dominating hold over the market until the end of 2020 owing to the substantial revenue generating capacity of the North American market. North America is considered to be the innovator of VOD services and has the largest market for video services. The vendor’s focus on premium licensing, local content production, and improving customer relationships will result in the high demand for video services in this region during the estimated period.
Competitive landscape and key vendors
The global video services market is extremely competitive and characterized by the presence of numerous large- and small-scale players. In this market, factors such as intense competition and increasing technological advances pose a significant challenge for vendors. As a result, most vendors compete on the basis of features, technology, video quality, and price to gain a competitive edge over their peers.
Top vendors in this market space are -
Other prominent vendors in this market are AT&T, ActiveVideo, TalkTalk TV Store, British Telecommunications, CinemaNow, Cox Communications, Deutsche Telekom, DirecTV, Facebook, IndieFlix, Pivotshare, Popcornflix, Redbox, Roku, Rovi, SnagFilms, Sony, Time Warner, Twitch, Twitter, Uscreen, Verizon, Vevo, and Vudu.
Technological segmentation and analysis of the video services market
At present, the VOD technology video services market segmentation dominates this market and is anticipated to retain its dominant market position until the end of 2020. VOD is preferred over video streaming services as it allows users to pay only for the channels they watch. Video streaming services are offered on online video platforms like YouTube and Netflix, which allow users to view videos and content based on either an ad-supported or subscription model. This will have a positive impact on the video services market growth.
Segmentation by business model and analysis of the video services market
Based on the video services industry analysis report, though the advertising segment dominates this market, the subscription business model segment is envisaged to dominate over all the other market segments by the end of 2020. Subscriptions are suitable for content providers that produce niche or special content. Such content has the ability to attract a large and dedicated subscriber base. For example, as of 2015, Netflix offered in-house TV series to more than 30 million paying subscribers per month.
Key questions answered in the report include
What will the market size and the growth rate be in 2020?
What are the key factors driving the global video services market?
What are the key market trends impacting the growth of the global video services market?
What are the challenges to market growth?
Who are the key vendors in the global video services market?
What are the market opportunities and threats faced by the vendors in the global video services market?
Trending factors influencing the market shares of the Americas, APAC, and EMEA.
What are the key outcomes of the five forces analysis of the global video services market?
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