Video on Demand Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Video-on-Demand Market Trends and Insights

Rapid Adoption of AVOD Platforms in Emerging Asia-Pacific Markets

Asia-Pacific audiences are embracing ad-supported offerings as platforms trade lower fees for higher reach, a tactic that garnered a USD 24.4 billion regional video revenue pool in 2023 avia.org. Advertisers value the 1.4 billion unique viewers who collectively streamed almost 14 billion hours of Asian content in the same year avia.org^{[1]Asia Video Industry Association, “AVIA: Asia’s Video Industry in 2023,” avia.org} . Forecasts suggest the region will unlock another USD 21 billion in video earnings by 2030 as AVOD inventory scales advanced-television.com ^{[2]Advanced Television, “Asia Pacific Video Revenues to Add USD 21 Billion by 2030,” advanced-television.com} . Multilingual ad load personalization and audience-based buying is raising CPMs, allowing platforms to offset thinner subscription margins. Together, these dynamics elevate AVOD from a supplemental to a core monetization pillar across emerging economies.

Expansion of Ultra-High-Speed Broadband Rollout in North America & Western Europe

Fiber-to-the-home penetration, 5G fixed-wireless access, and dynamic CDN routing now underpin seamless UHD delivery. Western European OTT episode and movie revenue will jump to USD 48 billion by 2029 from USD 31 billion in 2023 digitaltvnews.net ^{[3]StreamTV Insider, “Multicast-Assisted Unicast Delivery Cuts Live Bandwidth 90%,” streamtvinsider.com} . Operators are piloting multicast-assisted unicast delivery that can trim bandwidth use by as much as 90% during live traffic peaks streamtvinsider.com ^{[4]Digital TV News, “Western Europe OTT Revenues Forecast to Hit USD 48 Billion,” digitaltvnews.net} . Viewers benefit through faster start times and reduced buffering across TVs, phones, and in-vehicle screens. Such quality upgrades raise engagement minutes, directly supporting ARPU stability within the Video-on-Demand market.

Increased Content Investments in Local-Language Originals by Global Streamers

Platforms have shifted up to one-third of annual content outlays to regional productions. The Asia Video Industry Association highlights how short-form Chinese dramas and other local formats now secure global demand avia.org. Originals reduce licensing risk and signal cultural relevance, supporting stickiness even when overall subscription costs rise. AI-assisted production workflows, cited by AVIA, are lowering per-hour costs, enabling more frequent series launches. In net terms these investments widen addressable audiences and deepen engagement, feeding a virtuous growth cycle inside the Video-on-Demand market.

Bundling of VoD with Telecom & Pay-TV Subscriptions Driving Uptake in South America

Latin America will climb to 165 million SVOD subs by 2029, up from 110 million in 2023, with Brazil and Mexico as twin engines advanced-television.com. Streamers leverage carrier billing, zero-rating, and hybrid Pay-TV set-top integration to cut churn and expand reach. Chile-Peru carrier Entel earmarked USD 618 million in 2024 capex, largely for fiber rollouts that embed Video-on-Demand market services into converged plans entel.cl. These linkages strengthen the economic moat for both operators and content providers by embedding streaming into household utility budgets.

Escalating Content Licensing Costs Squeezing Platform Margins

Multiyear bidding wars over hit franchises inflate minimum guarantees, squeezing service profitability. Some mid-tier providers have culled libraries, positioning themselves either as buyers of exclusive hits or as sellers monetizing deep back catalogs. The European Commission notes that generative AI tools could eventually ease production costs but the near-term imbalance between spending and returns persists ec.europa.eu. Consequently, operators either push prices up or introduce lower-tier plans with ads, reinforcing the two-track monetization model visible throughout the Video-on-Demand market.

Rising Churn Rates Due to Subscription Fatigue in Matured SVOD Markets

Average monthly cancellation rates climbed in 2024 as cost-conscious households rotate services to chase flagship series. Research projects the subscription economy at USD 1.5 trillion by 2025, emphasizing the competitive tussle for wallet share ijcttjournal.org. Streaming bundles and longer-tenor discounts now act as primary defense. Still, the rise of “serial churners” undermines predictable cash flows and forces fresh spend on acquisition promotions, thereby nudging Video-on-Demand market operators toward diversified revenue streams such as live events and merchandising tie-ins.

Segment Analysis

By Business Model: AVOD Captures Growth Momentum

SVOD controlled 84.63% revenue in 2024, reflecting its early-mover status, but AVOD’s 11.12% forecast CAGR signals accelerating demand for low-cost entertainment. The Video-on-Demand market size attributable to AVOD will widen as global advertising outlays migrate to connected screens. Hybrid packages that merge limited ads with modest fees are emerging to curb subscription fatigue while preserving predictable cash receipts. Niche TVOD windows retain relevance for blockbuster premieres, with sports pay-per-view sustaining premium pricing elasticity.

Consumers in emerging economies increasingly treat AVOD as a first-choice service rather than a fallback, prompting platforms to localize ad creative and shorten ad loads. Advertisers, meanwhile, gain addressable targeting that rivals social media precision. For SVOD incumbents, gradual entry into advertising mitigates ARPU erosion. Together, these shifts refine monetization structures without altering the centrality of customer experience within the broader Video-on-Demand market.

Note: Segment shares of all individual segments available upon report purchase

By Delivery Technology: OTT Streaming Extends Lead

OTT streaming garnered 72% of 2024 revenues and is forecast at 11.3% CAGR through 2030. Unlike managed IPTV, OTT scales globally via open internet and adaptive bitrate protocols. MAUD trials that cut peak bandwidth needs by up to 90% further bolster cost efficiency for live events streamtvinsider.com. Thus, the Video-on-Demand market size for OTT channels will outpace legacy cable and satellite, even where Pay-TV VoD persists.

IPTV remains entrenched in regions with bundled DSL and fiber offerings, while HbbTV adoption in Europe and Brazil’s upcoming TV 3.0 highlight hybrid models that blend broadcast reach with broadband flexibility advanced-television.com. Looking ahead, the Video-on-Demand industry will integrate edge compute nodes to slash latency for immersive experiences such as volumetric video.

By Device Type: Smart TVs Ascend

Phones and tablets accounted for 43% of 2024 viewing time, cementing mobile’s convenience advantage. Yet smart TV shipments and app storefronts are scaling faster; smart-TV household penetration in the United States rose to 79% in 2024, with 62% of homes streaming weekly advanced-television.com. As panels grow brighter and cheaper, living-room screens reclaim primacy for premium dramas and sports.

Consequently, the Video-on-Demand market size captured by large-screen advertising is expanding. Plug-in streaming devices plateaued at 56% household usage in 2024 as built-in operating systems reduce cabling clutter thestreamable.com. PCs persist for educational video and dual-screen multitasking but no longer drive incremental subscriber growth.

By Content Genre: Sports Surges

Entertainment and drama anchored 50% of 2024 revenues, underscoring the evergreen appeal of scripted series. However, live sports leads in price elasticity, growing at 14% CAGR as leagues migrate online. The Video-on-Demand market size attached to sports commands premium CPMs, and rights holders negotiate platform-agnostic carve-outs to maximize global reach.

Kids and family libraries reduce churn because parents value safe-watch lists, while documentaries and educational content cultivate loyal micro-communities. Cross-category bundling mirrors linear pay-TV channel packs, but algorithmic row curation personalizes discovery, reinforcing engagement loops across the Video-on-Demand market.

Note: Segment shares of all individual segments available upon report purchase

By End-user: Commercial Uses Expand

Residential accounts captured 82% of spend in 2024, yet commercial venues like hotels, airlines, and hospitals register a 16% CAGR, making them a fast-emerging frontier. IBM’s enterprise-grade platform exemplifies how secure, scalable streams serve training, events, and customer amenity needs ibm.com.

Educational institutions embed lectures inside learning-management systems, while public agencies disseminate updates through on-demand portals. These diversified deployments broaden the Video-on-Demand market reach beyond direct consumer entertainment, anchoring new SaaS-style revenue models.

Geography Analysis

North America remained the largest contributor at 41.65% revenue share in 2024, benefiting from early broadband ubiquity and deep original-content pipelines. Industry bundles launched in 2025 combine multiple flagship services into discounted packages, an antidote to subscription fatigue. Federal infrastructure grants continue to extend rural fiber, reinforcing the Video-on-Demand market’s leadership position.

Asia-Pacific is the fastest-growing territory, tracking a 12.2% CAGR to 2030. National initiatives spanning 5G, cloud, and local-language production have spurred USD 24.4 billion in 2023 regional revenue avia.org. India and China top subscriber additions, while Japan and South Korea export cultural hits that travel well internationally. Growth is further supported by robust digital advertising spend, underpinning AVOD viability across emerging economies.

Latin America shows accelerating scale, projected to host 165 million SVOD accounts by 2029 advanced-television.com. Brazil alone may surpass 59 million subs. Telco partnerships ease payments and satisfy bandwidth requirements via ongoing fiber projects such as Entel’s USD 618 million 2024 investment entel.cl. Although global majors dominate, local platforms still secure 8% market share, reflecting regional storytelling demand within the Video-on-Demand market.