Video streaming is a form of media streaming that allows the transfer of video file from a server to a remote user. The content is usually in a compressed way that is transmitted over the internet. It can be real-time for example live broadcasts or on demand which are the significant segments of video streaming. Video streaming has been made possible by the availability of high tech devices and high-speed internet connection through 3G, 4G or LTE networks. It can be used for various purposes. Typically, video streaming is critical in entertainment, live conferences, and educations. The video industry has grown over the years and its one of the largest industry in the world today.
What is the global video streaming market size?
Video streaming presents a massive opportunity for both smartphone developers and internet service providers. People are getting an inclination towards video as a form of media since it gives a real feeling that makes one feel the event. Seeing is to believe, and video streaming is gaining popularity world over for this reason. Video streaming forms the dominant internet data consumer and contributes to the highest internet traffic. There are efforts to improve the convenience of watching content online. Facilitation of video streaming is via improved smartphones and other gadgets as well as upgraded network features. The growth in all the above over the years depicts the place of video streaming industry in the economy.
Video streaming industry has steadily grown over the years, and as of 2014, the industry revenue stood at $22.6 billion according to Pricewaterhouse Coopers. It is claimed that video streaming services now enjoy more subscription compared to cable connections. It is believed that video streaming is convenient and this is the reason why more than 613.3 million users opt for these services. The market is big enough to accommodate the competition that is getting stiffer in the industry. New entrants are battling it out with the established firms to get a share of the pie. You can get the latest movies from different sources at https://www.msn.com/en-us/entertainment/rf-watch-online, and the competition is a blessing to the consumers. Regionally, the United States forms the most significant revenue contributor to the global video streaming industry revenue. Familiar figures in the US include Netflix, Amazon, Hulu and many others.
Video streaming segmentation and market share
There are different categories of video streaming. It is prudent to get into the details of each group for you to understand the video streaming market size. The criteria used in categorization relies on upon, type, content delivery channels, regions, and revenue models. Every class has different characteristic and growth potential determining their market size. The factors that will determine the viability of video streaming are technological advancements, availability of high-speed internet connection and economic growth.
Based on the type of video streaming, the live video streaming is getting to dominate as the video on demand services are thought to be getting outdated. Considering the delivery channel of videos, we can classify video streaming into Over the top (OTT), pay TV and IPTV. Pay TV has had its share of dominance, but we expect a shift with the changes in technology. The market of video streaming is growing to accommodate more convenience and as such gets an inclination for portability and affordability. Smartphones and laptops now provide a large proportion of access to online streaming services.
Furthermore, the video streaming market is much focused on commercial ventures which include advertisement, education, and entertainment. Unlike residential services, it promises a good turnover and many people are getting to love the business video industry.
Regional market size
The online video consumption differs from one region to another. The first region classifications that have been studied include North America, Latin America, Europe, and Middle East & Africa. A 2017 report revealed that South East Asia is the fastest growing market in the region. Further, the report showed that North America region which comprises of US and Canada provided the largest revenue share for the video streaming market size. In the United States, for instance, the rapid growth in the market size of video streaming is mainly attributed to the transformation from the traditional media to digital media. The key players also vary from one region to another; hence one Netflix may dominate the North America market but not the Asian market.
The industry forecast
The SVOD services compose the most critical revenue generation industry at 80% compared to the VOD which accounts for only $ 4.1 billion of the revenue. The future is bright for Video streaming industry, and as evident in the report by CAGR, the SVOD will grow by more 16% for the next decade. As of 2018, the global video streaming market size was valued at $36.64 billion which represents a growth of more than $10 billion in a period of 4 years. The trend is set to continue, and it is forecast that by 2024 the market will hit $ 123.2 billion. Some of the factors that have promoted the growth in the industry include innovations such as blockchain technology and artificial intelligence which have improved video quality.
Adoption of cloud-based technology has also been crucial in enhancing the dissemination of video streaming. Mobile phones also promote the video streaming industry through various platforms such as social media and digital marketing. There are daily inventions that seek to improve video streaming services which have been prompted by the stiff competition in the industry. If you are searching for a business that can stand the test of time, then video streaming is one. According to various surveys, there are still very many opportunities to exploit in the industry. The market is growing bigger day by day, and hence we can expect greater things in the future.
Challenges limiting video streaming market size expansion
Video streaming is headed for greatness by the reports showing that there is an upward trend in the market. However, some limitations will prevent the success of the expected growth forecast. Piracy and government restrictions are a significant hindrance to the industry.