The increasing use of Video-on-demand (VOD) in industries such as Entertainment, Education and Training, Network Video Kiosks, Online Commerce, Digital Libraries and other ones is driving the growth of the VOD market across the globe. People around the world across generations are consuming more video than they ever have, and they plan to watch even more going into 2022.
A recent HubSpot survey revealed that audiences prefer video over all other forms of content including emails, infographics, and blog articles. Another report found year-over-year viewing times on VOD platforms up 155% (with almost 20 minutes spent per session).
Nowadays, consumers have their pick of dozens of video streaming services, both for free and with a paid subscription. In fact, according to different studies, video streaming revenue is forecast to grow 60% from 2020 to 2025 and reach $94 billion by the end of 2025, with most coming from subscription fees.
According to Cisco Systems, the demand for video is only going to grow. In their annual report, they predict the number of internet-connected devices will more than triple the global population by 2023. Cisco also forecasts 70% of the world will own mobile devices by then and consumer demand for 4K/UHD content will double. The demand for video is on the rise, and businesses and content creators are faced with endless opportunities in this market.
Trends landscape from 2021
Video on demand is the future of online content distribution and the latest trends prove it. With the start of this new year, it’s time to analyze and collect the trends that 2021 left us with:
1- People are spending most time watching paid streaming services compared to other types of video content
In recent years, the number of people consuming streaming services, both paid and free, has been steadily increasing, but paid VoD services, such as Netflix, HBO, Prime Video or Apple TV, have increased the most.
Even as people increase their away-from-home activities, the situation is rather that consumers will watch even more paid or free video streaming services in 2022.
2- The use of video streaming services on the smartphone is increasing
Though most consumers watch video streaming on the television, the use of smartphones to watch VoD content is increasing. In fact, among the youngest viewers, mobile is the most popular device for video streaming.
3- Streaming services are seen as better value and higher-quality content
Subscription cost and the quality of video content are the most important factors when consumers pick a VoD service. Other important attributes include the flexibility to cancel their subscription anytime and the availability of free content.
In addition, most consumers say that the content on streaming services is more entertaining than cable or satellite TV. Also, the viewers believe that streaming subscriptions offer better value for their money than subscribing to cable or satellite TV.
4- Consumers want access to some live content for free.
There are some types of content that consumers will pay for, but they also expect to get live content for free (presumably with ads).
Consumers are most likely to pay for on-demand movies and TV shows. Meanwhile, they want to get live news, award shows, gaming and sports for free.
5- Netflix is the most popular streaming service globally
Across the world, Netflix is the most popular streaming service, followed by YouTube, Prime Video, and Disney+.
In the top 10 streaming services globally, there are a mix of paid subscription-based services, ad-supported services, and free on-demand video services—which gives marketers options when building an advertising strategy to reach highly engaged streaming viewers.