2018 Video-on-Demand Forecast

2018 Video-on-Demand Forecast – TV facing a serious contender

Every year there is greater demand for video content, and 2018 will be no exception. Attention TV: the age of Video on Demand is upon us, and it’s time to adapt in order to remain relevant.


The data is in: convenience seems to have definitively won out, and not just among generations Y and Z anymore. Gen Xers, Baby Boomers and even the Silent Generation in the USA have reported watching VOD at least once a day. Surprised? You shouldn’t be. VOD’s popularity has been increasing since it first went mainstream just a few years ago.


What is VOD?

Video on Demand, as the name itself suggests, is a system in which users can decide exactly when and how they watch whichever film or TV show they choose to watch. Netflix, Hulu and Amazon Prime are among the most popular VOD services in use currently, but VOD is so much more than binging the new season of House of Cards all in one sitting. Ad-supported and pay-per-view services such as YouTube and myDish are also under the VOD umbrella, and marketing companies are in a constant race to capture as much advertising revenue from VOD services as possible.


One big thing all forms of VOD have in common is convenience. Because how many of us living in today’s hectic world can afford to plan our day around episodes of our favorite show? With VOD, viewing times are extremely flexible, and according to recent research, 77% of people using VOD services use them specifically for this reason. Not to mention that more and more people don’t even own a TV anymore! Yet another of VOD’s many benefits is that it allows user to view content from a variety of devices virtually anytime and anywhere. 


So how will this affect the future?

2018 is sure to be another big year for VOD, with the amount of people using VOD increasing to over 282 million. Just 4 years later, in 2022, this number is predicted to exceed over 410 million. Most of this revenue is generated in the United States ($11,510.3m), with China, the United Kingdom and Germany coming in second, third and fourth, respectively. Virtually all monitored key indicators are going up as well. Interestingly, however, one of the only thing that seems to be decreasing is the revenue from one user, which could possibly be explained by the increasing number of VOD users from poorer countries, where the monthly fees for using services such as Netflix are lower. The average revenue per user currently stands at $49.68, down from $52.97 2 years ago.


So-called cord-shaving, or getting rid of television services entirely and then replacing them with a much more flexible and tailored package is a trend that is definitely on the rise – in the third quarter of 2017 alone, approximately 1 million Americans left traditional TV behind, presumably forever.

So, will TV and its one-size-fits-all approach finally lose out to VOD completely? Some entertainment giants such as Disney seem to be taking the threat seriously and preparing to enter the VOD market with their own takes on companies such as Netflix (which was recently evaluated on $ 140 billions). And with technology moving forward at an ever-increasing pace, it looks like we will only have to wait a few more years to find out.




Deloitte.com, Statista.com, Marketresearch.com