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Spending on VOD to hit $32.3 billion in 2017!

Roshan Dwivedi Published on : 08 May 2017

A study conducted by Gartner Inc suggests that Global spending on VOD services will total $32.3 billion in 2017, a 22.3% increase from 2016. According to Gartner, internet- delivered linear TV services that have already been launched in India and the Middle East, will be introduced in all emerging regions by 2018.

Transactional video on demand (TVOD) enables consumers to access a wide array of content from OTT Companies like Amazon, Google or Apple. The access to premium priced 4K content will give rise to an increase in end-user spending on TVOD content in mature regions which is anticipated to go up from $160 million in 2017 to $400 million by 2020. There has been an increase of 28% from 2016 amounting to a total Global Consumer spending of $18.7 billion in 2017 for subscription based video on demand (SVOD) services. Average consumer adoption of SVOD services increased by 10% in 2017. The ARPU’s are highest in Japan ($12.10), Mature Asia Pacific ($10.84) and North America ($9.60). The key to augmented penetration is universal search which will allow consumers to look for content across all their SVOD services. However true universal search is still some years away since the big players like Netflix and HBO don’t want to cooperate. Read More

Written by: Roshan Dwivedi

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