The global video-on-demand market will be worth US$263 billion by the end of this year, according to a new report.
Rise in demand and a proliferation of new services around the world means the international VOD market will have grown US$56 billion from the 2014 figure of US$207 billion, the Future Market Insights research claimed.
The North American VOD market is expected to surpass the US$100 billion mark by the end of 2015, with further growth expected. Western Europe is expected to reach a US$55.6 billion valuation by year-end, with an annual growth rate of 4%.
North America and western Europe account for the largest two VOD markets, with Asia Pacific expected to increase its share from the current 13% to more than 22% by 2020, at which point it will become the second-largest region. At that point the region (excluding Japan) is expected to reach US$80.5 billion.
Longer term, the Video on Demand Market: Global Industry Analysis and Opportunity Assessment 2014-2020 suggested pay TV services would remain strong during its forecast period.
The report’s figures combine those it describes as ‘software players’, such as Cisco, SeaChange and Pace, and ‘service providers’, including Netflix, Hulu and Amazon Prime Instant Video.