VOD creates new chapter in fields of making films, TV series

TEHRAN, Dec. 06 (MNA) --- Due to opportunities and threats in fields of communication technologies, today, utilizing Video on Demand is considered as an undeniable necessity. So, issue of VOD creates a new chapter in fields of making film and series.

In the meantime, we could use VOD as an instrument to make revenues via advertisement.

VoD which is a media distribution system, allows users to access videos without a traditional video playback device and the constraints of a typical static broadcasting schedule.

In the 20th century, broadcasting in the form of over-the-air programming was the most common form of media distribution.

As Internet and IPTV technologies continued to develop in the 1990s, consumers began to gravitate towards non-traditional modes of content consumption, which culminated in the arrival of VoD on televisions and personal computers.

Disney, Paramount, Sony, Universal and Warner Bros. subsequently launched the Digital Cinema Initiative, in 2002.

Television VoD systems can stream content, either through a traditional set-top box or through remote devices such as computers, tablets, and smartphones.

VoD users can permanently download content to a device such as a computer, digital video recorder or a portable media player for continued viewing.

The majority of cable and telephone company–based television providers offer VoD streaming, whereby a user selects a video programme that begins to play immediately or downloading to a digital video recorder (DVR) rented or purchased from the provider, or to a PC or to a portable device for deferred viewing.

The VOD system was first launched in Iran on February 29, 2016.

Due to the outbreak of the coronavirus and the long-term presence of people at homes in the past few weeks and in the future, using VOD is becoming very popular all over the world, Iran in particular.

For instance, the famous Iranian director Ebrahim Hatamikia has decided to premier his long-awaited film “Exodus” through the Video-On-Demand system as all cinemas are closed over the spread of coronavirus.

The film is to be released online in the coming days on Filimo and Namava VOD platforms.

Based on the region, Asia Pacific is expected to witness the highest growth during the forecast period.

Asia Pacific (APAC) has a wide market of consumers that have diverse consumption habits and payment demands that are culturally and economically diversified. The major countries that contribute significantly to the APAC region's VoD market size are China and Japan.

There is an anticipated surge in consumption and revenue in the next few years from over-the-top (OTT) media services. OTT refers to content that is distributed directly to viewers over the internet and is a subset of VOD.

It is also predicted that Southeast Asia will have four million paid subscription video-on-demand (SVOD) accounts in 2019. This number is expected to grow to 6.2 million subscribers by 2022.

The 2018 report, ‘SVOD in Asia Pacific: the gold rush’ states that by 2022, the SVOD market in Southeast Asia is expected to be valued at US$390 million.

North America is expected to hold the largest video on demand market share during the forecast period. This Dominance of North America is attributed to the video-on-demand service providers and increased demand for on-demand video consumption in the region. In addition, the increased development of film, sports, and television content, along with the partnership of key content producers with major suppliers of on-demand services across the area, has led to the adoption and growth of services for video on demand (VoD).

Revenue in the Video-on-Demand segment is projected to reach US$14,728m in 2020.

Revenue is expected to show an annual growth rate (CAGR 2020-2025) of 15.7%, resulting in a projected market volume of US$30,544m by 2025.

The market's largest segment is Video Streaming (SVoD) with a projected market volume of US$12,353m in 2020.

User penetration will be 9.4% in 2020 and is expected to hit 22.5% by 2025.

The average revenue per user (ARPU) is expected to amount to US$29.91.

According to the latest figure announced by Statista, the European countries are forerunner in terms of using VOD in the world.

Among the European countries, the UK, The Netherlands, France, Spain, Germany, Russia, Ireland, Czech Republic, Sweden and Poland ranked first to ten respectively.

For instance, the UK ranked first with a total of 539 VoD services available. France had a total of 240 legal VoD services available.

In the meantime, the range of using VoD in the US is increasing.

The latest figure shows that the revenue in the VoD segment is projected to reach US$27,676m in 2020.

Meantime, the revenue is expected to show an annual growth rate (CAGR 2020-2025) of 6.1%, resulting in a projected market volume of US$37,200m by 2025.

It is also anticipated that the user penetration will be 41.2% in 2020 and is expected to hit 64.0% by 2025 in the US.

The average revenue per user (ARPU) is expected to amount to US$176.75.

It is worth mentioning that the ad-supported VOD platforms experienced strong growth in ad revenues in Q2 2020, making the VOD space a bright spot in the ad market amid the pandemic.

Across five of the major ad-supported streaming platforms (Roku, Hulu, Peacock, Pluto TV and Tubi), ad revenues jumped 31% year-over-year (YoY) to reach $849 million last quarter, according to new estimates from MoffettNathanson Research.

That increase is in line with our expectations for US connected TV (CTV) advertising for 2020, where most VOD dollars are likely going.

It is also forecasted that US CTV ad spending will grow by 25.2% this year due to the sharp increase in usage amid lockdowns.

In the meantime, due to the pandemic, the 14th Iran International Documentary Film Festival known as “Cinema Verite” will be held entirely online from December 15-22.

This year edition of the festival will use domestic platforms for displaying its films via utilizing domestic platforms like Hashor, Namava, Filimo, tiva


News Code 166840


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