With an ever-changing landscape, tv and media consumption has seen an uptick in terms of viewership massively in the past two years. As a result, traditional media has become a thing of the past.
According to this Video on Demand (VOD) Service Market study, the VOD market is expected to reach an estimated US$ 183.93 billion by 2031. However, popular streaming platforms are regionally restricted. Most notably, recent technological advancements in connectivity have genuinely transformed the streaming experience.
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Today, we’re going to discuss the factors that fuel the demand and requirement for VOD services in the entertainment industry.
The Current Landscape
VOD platforms are genuinely game changers regarding how people can consume their content. As a result, the entertainment and media industry has undergone massive changes in the past few years, focusing on content production and licensing.
Undoubtedly, these platforms actively invest in creating original programming to compete directly with traditional media houses.
A critical area that needs to be understood is radically changing consumer behavior. Today’s consumer is omnipresent, expecting only relevant video content to be shown to them, tailor-made to their preferences.
Moreover, the consumer expects that their favorite content is accessible to them, anywhere, at any time, in a format that suits their needs.
For instance, were you aware that about 75% of Americans have more than 2 OTT subscriptions? This preference for having multiple subscriptions is because more people are opting to cut the cord and subscribe to VOD services.
Media Consumption is at an all-time high
Though 2020 was a year of torment and turbulence. The lockdown period placed a reset on everyone’s life, as they saw people invest more time and energy in comfortable entertainment sources within the comfort of their homes.
Media consumption exploded, with average viewing figures of 05 hours and 53 minutes in the U.S. only. Moreover, according to a study of Digital media trends, people in the U.S. stream more user-generated content than they did in previous years, with the number surging to 70% among Gen Z.
It’s no secret that the pandemic paved the way for many VOD services to find their footing in the world and make their mark. More and more people were inclined to reach out to entertainment sources as they were locked in at home.
The ongoing pandemic pushed people indoors and demanded organizations to re-invent themselves as service providers. Amidst health concerns, advanced technology like 5G has helped increase mobile penetration, which means that people can access content from within the palm of their hands. You can also check out in detail how technology has changed streaming.
Furthermore, post-pandemic, we’ve seen healthy, consistent engagements on the platforms, which further indicates that the trend is here to stay.
The ease of accessibility meant that viewership figures increased massively, as the streaming platforms can be accessed from any smart device, tablet, or personal computer.
So the big question remains; will existing giants like Amazon, Apple, and Netflix further dominate the market? or will traditional T.V. and media outlets revamp themselves in the drive for inclusion and acceptance by consumers?
Since the landscape is rapidly evolving, it isn’t easy to pinpoint a prediction outline. However, the current factors driving the industry, for now, indicate that VOD is here to stay as customer expectations increase significantly with more competitors in place.
Our Final Thoughts
In conclusion, VOD services have seen rapid growth in the past decade. The industry is also expected to grow exponentially as billions of dollars are invested.
Some streaming platforms are limited to the U.S alone, so it will be interesting to note the different measures they employ to capture the attention of global consumers around the world. Every platform offers something different, and choices inundate the consumer.
Some offer unique content niches, while others only provide licensed content on their platform. The entertainment industry is expensive, and if you want to be at the top of your game, the quality you provide to consumers should be top-notch.
Subscription fees are mainly how these platforms make an earning. However, they will need to spend adequately on advertising and collaborations to create a worthy mark.
The definite future of VOD services comes from creativity, innovation, and adaptation. So, let’s see how well everyone adapts and molds to the changing landscape of digital media.