Video-on-demand industry snapshot by region in 2021
The VOD industry has been rapidly growing in recent years, with video streaming leading this growth with a market volume of US$71,506m in 2021, according to Statista. Take a look at some stats, predictions, and trends for further growth in the sector globally and across different regions of the world.
VOD growth has been fueled by similar factors worldwide
Coronavirus lockdown restrictions have attracted more people towards subscriber video-on-demand (SVOD) content as they were looking for new forms of home entertainment. So has the growing adoption of mobile devices used to stream videos not only at home but also on the go, once the lockdowns eased.
This way, the most significant players like Netflix or Amazon Prime started growing globally even more. An important factor has certainly been the ease of billing, with OTT video service subscriptions often being available bundled with mobile carrier services through direct carrier billing.
Add in the growing high-speed internet adoption for higher-quality streaming, and we have a recipe for further growth.
By 2025, the VOD industry is expected to be worth USD 126B
This is a growth rate of 10.17% (2021-2025). The highest revenue growth is expected to be seen in the US, reaching US$50.56B by 2025. US$32.08B of that amount will come from video streaming, which is the leading trend globally as well.
This trend is also seen when it comes to average revenue per user (ARPU), with the lowest-revenue segment being video downloads, and a close second-to-last, pay-per-view TV. It differs slightly from country to country, and in two local cases, video downloads actually beat TVoD (USA and Germany, with the US presenting quite a steady level). But regardless, in every case, SVoD is a clear winner.
China with lower revenue but higher growth
Even though China’s VoD revenue is expected to reach US$23.3B, which is less than a half of the projected US revenue, the growth rate is significantly higher at 15.93%, compared to the USA’s 8.81%. Around half of the projected revenue will come from video streaming.
In comparison, UK is expected to grow to $5.85B in 2025, with a growth rate of 6.50%, while South Korea is expected to reach just US$1.26B at a 7.31% growth rate.
Payment preferences slightly different across countries
As expected, individual countries will also present a different mix of payment methods, with many countries like the US, the UK, or South Korea clearly preferring card payments. At the same time, China clearly goes for the e-wallet, preferred by more than a half of the population.
Interestingly, Germany still opts for bank transfers, with a second preference for e-wallets and only 11% of the users choosing cards.
Download the video-on-demand snapshots for different markets
Though the general trends seem consistent, the numbers can vary immensely by country, as you can see from the data samples above.
To take a look at the individual country snapshots in greater detail, along with getting more insight into the accompanying payment ecosystems, download the infographics below: