Transactional Video on Demand Market

Transactional Video on Demand Market Size:

The global transactional video on demand market size reached US$ 7.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 21.7 Billion by 2032, exhibiting a growth rate (CAGR) of 13.14% during 2024-2032. The rising demand for flexibility and personalized content consumption, the availability of a wide range of content, the increasing prevalence of digital platforms and devices, and changing consumer preferences are some of the major factors that are significantly propelling the market.

Transactional Video on Demand Market Analysis:

• Major Market Drivers: The market is majorly driven by the heightening demand for pay-per-view, customizable entertainment options. Customer preferences are currently inclining away from conventional cable models towards more on-demand, personalized content. Furthermore, the escalating penetration of excellent-speed internet and innovations in digital payment systems have made transitional video on demand (TVOD) more accessible to a broad range of audience, thereby favoring its expansion. In addition, the rapid extension of high-quality content libraries, such as exclusive shows or early access to blockbuster films, is appealing a varying range of consumers. This trend is further reinforced by the surge in smart device utilization, which provide seamless access to TVOD services on multiple platforms, ultimately enhancing the  transactional video on demand market outlook.
• Key Market Trends: The market is experiencing substantial transformations fueled by evolving customer behavior and technological innovations. Another crucial trend is the accelerating adoption of 4K and ultra HD content, which is improving the viewer’s experience. In addition, the significant surge in exclusive collaborations between transactional video on demand platforms and content creators, offering consumers access to both original and premium content. In addition, incorporation of artificial intelligence (AI) to customize content recommendation and improve viewer engagement is another key trend in the global market dynamics. Moreover, the user preferences for pay-as-you-go pricing frameworks and ad-free viewing platforms are establishing TVOD as an ideal choice for premium content, further bolstering the transitional video on demand market growth significantly.
• Geographical Trends: North America has positioned itself as the largest regional market for transitional video on demand, primarily driven by an accelerating tech-savvy population and robust internet infrastructure. The U.S., particularly, is dominating majorly due to its broad base of early adopters and presence of leading entertainment studios that utilize transaction video on demand platforms for movie releases. In addition, elevated disposable incomes and a heightening preference for ad-free as well as premium content further support the expansion of this platform in the region. Furthermore, the viewers in North America are currently favoring the adaptability of pay-per-view models for niche content as well as new releases. Moreover, this well-established market leadership is further fortified by the expansion of both streaming devices and smart TVs, making TVOD easily accessible, consequently spurring the transactional video on demand market demand in North America.
• Competitive Landscape: Some of the major market players in the transactional video on demand industry include Amazon.com, Inc., Apple Inc., Brightcove Inc., Comcast, Google LLC (Alphabet Inc.), Rakuten Group, Inc., VIXY BV, among many others.
• Challenges and Opportunities: The market experiences challenges including an intense competition from ad-supported (AVOD) and subscription-based (SVOD) models, combined with content fragmentation that restricts viewer engagement. Nonetheless, developing markets with increasing internet penetration and smartphone purchases offer substantial opportunities. Customer preference for flexible content viewing is propelling niche segments for event-based programming and exclusive content. In addition, advancements including direct-to-digital premieres as well as early film releases provide growth prospects, permitting transactional video on demand platforms to distinguish themselves in a highly competitive streaming ecosystem.
   

Transactional Video on Demand Market Trends:

Increasing Adoption of UHD and 4K Content

The increasing customer preference for high-definition content is significantly bolstering the demand for ultra-high-definition (UHD) and 4K services in the global transactional video on demand (TVOD) market. Moreover, various platforms are currently investing in UHD and 4K content, providing exceptional visual quality that appeals to early adopters of cutting-edge technology and home cinema enthusiasts. In addition, this trend is further fueled by the rising availability of smart TVs and 4K-enabled devices, prompting TVOD platforms to improve their premium content libraries to address the evolving user expectations for superior sound as well as picture quality. As per industry reports, in 2023, global sales of smart TVs were approximately 80 million units.

Rapid Growth of Premium Content Libraries

According to the transactional video on demand market report, a significant growth has been observed in global market due to increasing growth of the premium content libraries. Major platforms are rapidly providing exclusive early access to additional bonus content, blockbuster films, and special editions. In July 2023, BookMyShow Stream, a transaction on video demand streaming platform, announced a partnership with MUBI to provide around 40 internationally acclaimed, award-winning titles on its TVOD platform for Indian audiences. This collaboration is anticipated to improve BookMyShow Stream’s content library, offering viewers with an extended range of premium viewing options. Moreover, this trend appeals to customers that are actively seeking exclusive packages and high-grade viewing experiences. In addition, as leading studios are constantly releasing their content directly on transactional video on demand platforms to elevate their revenue, particularly for significant releases, this model is intensely to gaining momentum, offering an excellent substitute to conventional subscription-based services as well as theatrical windows.

Incorporation of TVOD into Streaming Ecosystems

As per the transactional video on demand market research report, the widespread adoption of digital devices stands as a significant driving factor behind the growth of the TVOD market. The rising integration of smartphones, tablets, smart TVs, and laptops into daily life is transforming the way consumers engage with content. As per industry reports, in 2024, 4.88 billion people, i.e. 60.42% of the global population, are smartphone users. These devices offer seamless and convenient access to TVOD platforms, allowing users to enjoy their chosen content anywhere, anytime. This accessibility caters to the modern lifestyle, aligning with the preferences of on-the-go viewers who demand flexibility and instant gratification. The convergence of digital technologies and pervasive device usage amplifies the reach and appeal of TVOD services, thus making them an integral part of the digital entertainment landscape and reshaping how audiences consume premium content.

Transactional Video on Demand Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on access type, content type, and availability type.

Breakup by Access Type:

• OTT Streaming Devices
• Desktops and Laptops
• Smartphones and Tablets
• Smart TVs
• Others
   

Smartphones and tablets accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the access type. This includes OTT streaming devices, desktops and laptops, smartphones and tablets, smart TVs, and others. According to the report, smartphones and tablets represented the largest segment.

As per the transactional video on demand market forecast, smartphones and tablets are anticipated to remain the dominant access segment in the transactional video on demand (TVOD) market due to their convenience for on-the-go viewing as well as portability. Such devices align with the modern lifestyle, providing user-friendly mobile apps for safe payments, uninterrupted content navigation, and customized recommendations. In addition, high-speed internet connectivity further improves streaming quality, facilitating seamless experiences. Moreover, comprehensive ownership and daily incorporation of such devices position them as requisite tools propelling TVOD market growth. As per industry reports, in 2023, around 22% to 23% individuals used tablets for streaming videos, while approximately 1.28 billion people used tablets globally.

Breakup by Content Type:

• Entertainment
• Food
• Travel and Fashion
• Gaming and Sports
• Others
   

Entertainment holds the largest share of the industry

A detailed breakup and analysis of the market based on the content type have also been provided in the report. This includes entertainment, food, travel and fashion, gaming and sports, and others. According to the report, entertainment accounted for the largest market share.

According to the transactional video on demand market overview, the demand for entertainment in the transactional video on demand (TVOD) market is principally driven by immediate access to variety of content, encompassing exclusive shows as well as new releases. TVOD platforms provide flexibility, permitting users to choose and pay for content on demand, thereby catering to the modern viewing preferences. In addition, personalized content curation improves engagement, meanwhile the lack of long-term commitments appeals occasional viewers seeking cost-efficient options. Moreover, tactical partnerships between TVOD platforms and content creators further proliferate the content library, appealing to a broad range of audience.

Breakup by Availability Type:

• Electronic Sell Through
• Download to Rent
   

Electronic sell through represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the availability type. This includes electronic sell through and download to rent. According to the report, electronic sell through represented the largest segment.

The demand for electronic sell through (EST) in the transactional video on demand market is primarily driven by the convenience of owning digital content permanently, permitting users to develop their libraries. Electronic sell through facilitates the offline viewing of content, appealing particularly to those with limited internet connectivity. In addition, both exclusive content and bonus features attract collectors, whereas cross-platform compatibility fosters adaptability across various devices. Moreover, these factors establish EST as an ideal option for viewers actively seeking improved content availability and long-term access without any dependency on constant streaming thereby increasing the transactional video on demand market value.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest transactional video on demand market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for transactional video on demand.

North America has emerged as the leading regional market for the global transactional video on demand industry, primarily driven by robust digital infrastructure, an increased customer demand for on-demand content, and extensive internet infiltration. In addition, the region profits from the early adoption of upgraded technologies, domination of leading streaming platforms, and resilient digital payment systems. Moreover, a well-established entertainment sector and heightening consumer inclination towards digital purchases further fortify its dominance in the TVOD market, substantially contributing to the rising transactional video on demand revenue. As per industry reports, approximately 254 million individuals in the U.S. are projected to watch OTT video in the year 2024.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the transactional video on demand industry include Amazon.com, Inc., Apple Inc., Brightcove Inc., Comcast, Google LLC (Alphabet Inc.), Rakuten Group, Inc., and VIXY BV.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The competitive landscape is characterized by key players adopting different strategies to differentiate themselves and cater to the transforming user demands. These encompass focusing on sustainability with eco-friendly solutions, deploying upgraded technologies to improve efficacy, and heavily investing in workforce training to guarantee high-quality delivery of service. Moreover, major transactional video on demand companies are actively participating in strategic partnerships and acquisitions to expand their market foothold and maintain competition. For instance, in September 2024, The BBFC announced a strategic partnership with Amazon Prime Video for the extensive coverage of BBFC age ratings across the majority of prime video’s transactional video on demand content offerings. In addition, the incorporation of digital tools, such as real-time communication and scheduling platforms, is enhancing consumer satisfaction as well as transparency, fostering the development of long-term customer relationships.

Transactional Video on Demand Market News:

• In February 2024, Plex, a streaming media service company, announced the launch of Plex Rentals, a transactional video on demand service platform, accessible to its authorized users.
• In December 2023, 1&1, a Germany-based telecommunications provider, announced a partnership with Rakuten TV, a prominent streaming platform, and Zattoo, streaming television company, to introduce its own video on demand services. The partnership includes incorporation of Rakuten’s transaction video on demand services into 1&1 TV platform.

Transactional Video on Demand Market Report Scope:

Key Questions Answered in This Report:

• How has the global transactional video on demand market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global transactional video on demand market?
• What is the impact of each driver, restraint, and opportunity on the global transactional video on demand market?
• What are the key regional markets?
• Which countries represent the most attractive transactional video on demand market?
• What is the breakup of the market based on the access type?
• Which is the most attractive access type in the transactional video on demand market?
• What is the breakup of the market based on the content type?
• Which is the most attractive content type in the transactional video on demand market?
• What is the breakup of the market based on the availability type?
• Which is the most attractive availability type in the transactional video on demand market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global transactional video on demand market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the transactional video on demand market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global transactional video on demand market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the transactional video on demand industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.