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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.
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.
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.
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.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by technology
PART 07: Market segmentation by business model
PART 08: Buying criteria
PART 09: Geographical segmentation
PART 10: Key leading country
PART 11: Market drivers
PART 12: Impact of drivers
PART 13: Market challenges
PART 14: Impact of drivers and challenges
PART 15: Market trends
PART 16: Vendor landscape
PART 17: Appendix
PART 18: Explore Technavio
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