Video-On-Demand Market to Expand at Stellar CAGR During COVID-19 Pandemic; Demand to Escalate With Lockdown Extension, Says PMR
Date : Apr 30, 2020 Author : PMR Editorial Staff Category : Technology
The global economic impact of the COVID-19 pandemic can be felt across the tumbling markets and the emergencies in different countries.
The global economic impact of the COVID-19 pandemic can be felt across the tumbling markets and the emergencies in different countries. The global habits are rapidly changing to adapt to the changing dynamics of the work and stay at home cultures. Restricted social gathering has significantly increased media consumption. Consumers are becoming regulars on news websites to stay updated about the latest happenings in the crisis-ridden world. Fake news and rumor mills are also making rounds, compelling the authorities to take action. There is an upsurge in the volume of audience for online and telecasted videos. Traditional media brands that underwent a decline in popularity, are reporting an uptick in the viewership.
An increase in penetration of the internet has expanded the market for video-on-demand. A spike in the demand has been observed for the broadcast and internet video software during the COVID-19 crisis. The urge to socialize from home is increasing the demand for live video streaming services. Growth in the use of smart devices is escalating the need for internet video software. The market for internet videos is flooding with content owing to easy to use social media applications such as Tiktok and YouTube. Encouraged by the spike in viewership, social media influencers have amplified their efforts towards creating videos in terms of quality as well as quality, substantially increasing the demand for video streaming.
High Demand For Classics Generates Growth Opportunities
A sudden surge has been noticed in the video streaming of old and classic television dramas such as Friends during the lockdown period. Audiences are drawn to mythological serials such as Ramayana in Indian society. Assessing the opportunities in video streaming during the COVID-19 pandemic, the service providers are bringing in all the old hit television series on platforms such as YouTube. Such developments are boosting the growth of the video-on-demand market. Internet videos are used as a tool by home-locked celebrities to maintain their market presence. The frequent video created by them for a workout or spreading awareness is also significantly contributing to the expansion of the video-on-demand landscape.
The shutdown of production in entertainment industries such as Hollywood and Bollywood have diverted the producers towards the digital media. Many of the scheduled movies have been released on different internet platforms with an aspiration to gain maximum viewership from home. Leading platforms such as Amazon.com are collaborating with these producers and content craters to land maximum deals in its favor.
Smart TVs Gain Significance
The components of digital terrestrial television such as smart TVs are also contributing to the revenue generation in the market. Internet surfing from smart TVs has spiked in the COVID-19 crisis as a medium for family entertainment. Reports suggest a 60% hike in total TV usage during COVID-19 pandemic in the US. Experts suggest this consumption figure to further climb up in case the lockdown continues. Smart TVs have gained significance as all-in-one providers of different modes of videos such as DVR recording, live TV, streaming services, and video on demand. These TVs are also attracting the children's population owing to restricted outdoor activities.
To gain from the dramatic growth in viewership, advertisers have scaled their efforts in introducing their ads in popular videos. The same is true in the reversed case scenario where the video creators are demanding advertisements to monetize their effort. Both the areas are generating growth opportunities in ad-supported-video-on-demand market for both the parties, the advertisers, and video providers. PMR predicts such developments to generate a major revenue in the video-on-demand market.
Advertisers Seek New Revenue Opportunities
Besides video specific content, music streaming is also pushing the growth of video-on-demand market ahead. Advertisers are also seeking revenue opportunities on audio streaming platforms such as gaana.com. COVID-19 pandemic is drawing a clear correlation between revenue growth in retail advertising and economic growth. There has been a decline in advertising revenue generated by retail companies. The expectation of lower footfall in the retail sector in this crisis is negatively influencing the market revenue of advertisers.
Brands with online presence are looking forward to capitalize on this COVID-19 lockdown period. Growth in physical social distancing is leading towards phenomenal growth in the adoption of video streaming platforms such as Netflix and Amazon. Market players are adding new features in their existing services to attract a larger population segment. PMR forecasts the current hike in market revenue to decline over time as the economy resumes its normal shape. However, an extension in lockdown will have inverse impact and the revenue is projected to scale.
Report Highlights: Global video-on-demand Market
- Parent market overview
- Market forecast analysis – by volume and value
- Recent trends and developments
- Competitive scenario evaluation
- Strategic assessment of market players
- Overall performance matrix for a predefined period