The fact that ‘Netflix and chill’ has become synonymous with sex, widely understood as an invitation to hookup, is a pretty good barometer for just how ingrained digital video has become in our daily lives.
Everyone has access to some sort of video content, be it YouTube videos, IPTV or streaming services.
The widespread availability of digital videos is facilitating massive growth in digital video content, the market for which is expected to more than double by 2019, reaching a market value for $269.2 billion and growing at a CAGR of 15.43% from 2014-2019.
Digital video content market by distribution
Digital cable TV
The global digital cable TV market was valued at $69.30 billion in 2014 and is likely to reach $89.10 billion by 2019, growing at a CAGR of 5.15%.
The digital cable TV segment is one of the largest segments in the global digital video content market because of the increase in the TV viewing population and digitization of cable TV.
IPTV
The global IPTV market was valued at $30.37 billion in 2014 and is likely to reach $76.59 billion by 2019, growing at a CAGR of 20.32%.
Check out Technavio’s own contribution to the digital video market on our YouTube channel:
Online video
The global online video market was valued at $15.90 billion in 2014 and is likely to reach $58.70 billion by 2019, growing at a CAGR of 29.85%.
For online video, access is key. Smartphone proliferation combined with social media and low-cost data plans have made access to and sharing of online videos easier than ever, which is boosting this segment of the market.
VOD and OTT/Streaming
The global VOD and OTT/Streaming market was valued at $15.82 billion in 2014 and is likely to reach $44.83 billion by 2019, growing at a CAGR of 23.16%.
Innovations and advances in technology are accelerating growth of the VOD market, but it’s the OTT/streaming segment that really shines here.
Leading players such as Netflix and Hulu are upgrading their content and business models, to appeal to even broader user bases. The availability of subscription options and premium content coupled with an entire generation of Netflix junkies clamoring for more has led to an increase in the demand for OTT subscription services.
VOD vs OTT
The OTT/streaming segment itself is likely to grow at a CAGR of 29.25% to reach $30.30 billion by 2019. In 2014 the market was relatively evenly split between VOD and OTT/streaming, with the former holding a 46.9% market share, and the latter holding a 53.10% share.
However, by 2019 OTT is expected to have chipped away significantly at VOD’s share of the pie and attain a 67.59% share, edging the VOD segment down to just 32.41% of the market.
