VOD (Video On Demand) is a technology and service that allows users to choose to watch video content according to their own needs and time. VOD services allow users to watch a variety of video content such as movies, TV shows, documentaries, etc., at any time through channels such as the Internet, cable TV, or satellite TV.
The main features of VOD services are flexibility and personalization. Users can choose to watch the content they want at any time and can pause, fast-forward, and rewind the playback. Typical applications of VOD services include online video platforms (such as Netflix, Hulu, YouTube, etc.) and on-demand services provided by TV operators.
Currently, there are four different VOD business models: AVOD, SVOD, TVOD, and PVOD. Each has its own advantages and disadvantages, suitable for different application scenarios and user needs.
Market shares can vary over time, region, and industry development, making it difficult to provide precise data. However, based on some statistical reports and industry analysis, we can get a rough idea.
AVOD (Advertising-supported Video On Demand): The AVOD market continues to grow globally, especially in Asia and emerging markets. It is estimated that by 2023, the global AVOD market revenue will reach 56 billion US dollars. YouTube is the main leader in the AVOD market, dominating the global market share.
SVOD (Subscription Video On Demand): The SVOD market has expanded rapidly in recent years, particularly in North America and European markets. According to statistics, the global SVOD market revenue in 2020 was approximately 50 billion US dollars. Platforms such as Netflix, Amazon Prime Video, and Hulu occupy a dominant position in the SVOD market.
TVOD (Transactional Video On Demand): The TVOD market is relatively small but performs well in certain regions and niche markets. For example, iTunes and Google Play Movies & TV have a significant market share in the movie rental and purchase field. However, with the growth of SVOD platforms, the growth rate of the TVOD market may slow down.
PVOD (Premium Video On Demand): The PVOD market is relatively new, with a smaller market share. During the COVID-19 pandemic, the PVOD market received some boost as many films switched to online premieres. However, with the reopening of cinemas, the growth of the PVOD market may be affected to some extent.
It is worth noting that these data may change as the market evolves. The market share of various VOD models may also vary among different regions and user groups.
Depending on the specific VOD model (AVOD, SVOD, TVOD, and PVOD), platforms may also need to address particular challenges, such as fluctuations in advertising revenue, slowed subscription growth, and declines in single purchase and rental income. To address these challenges, VOD platforms will engage in strategic adjustments, partnership building, and technological innovation.
AVOD (Advertising-supported Video On Demand): With the growth of the online advertising market, the AVOD model may continue to expand its market share. In addition, adopting more refined targeted advertising strategies and innovative ad formats will help increase AVOD platforms' advertising revenue. At the same time, free and low-cost AVOD services may become more popular in emerging markets and cost-sensitive user groups.
SVOD (Subscription Video On Demand): The SVOD market will continue to maintain its growth momentum, especially in high-quality original content and diversified content. Competition will drive major SVOD platforms to increase their investment in high-quality content to attract and retain users. In addition, SVOD platforms may seek to bundle with other services to expand their user base and revenue sources.
TVOD (Transactional Video On Demand): The TVOD market may face certain challenges in the future, as more and more users turn to SVOD and AVOD services. However, TVOD still has some market potential, especially in providing newly released movies, exclusive content, and sports events. To cope with competition, TVOD platforms may seek to cooperate with other VOD models or third-party services to offer more attractive products and services.
PVOD (Premium Video On Demand): The future development of the PVOD market will depend on various factors, such as the reopening of cinemas, the impact of the COVID-19 pandemic, and consumers' acceptance of watching newly released movies online. Although the PVOD market may receive some boost in the short term, the long-term trend remains unclear. PVOD platforms may need to work closely with film producers and distributors to develop more attractive pricing strategies and distribution models.
In summary, all four VOD models - AVOD, SVOD, TVOD, and PVOD - will face intense competition in the future. To maintain competitiveness in the market, major VOD platforms need to continuously innovate, improve content quality and user experience, and seek diversified revenue sources and cooperation opportunities.