Interactive Video on Demand Market: Pin-point Analyses of Market Competition Dynamics

In the past decade, the concept of video on demand (VOD) has gained in popularity, due to a rise in the ubiquity of smartphones and significantly improved broadband Internet networks. Consumers can now decide and consequently pay only for the video content they wish to watch, be it movies, games and music, news and live event streaming, or other content. Interactive video on demand (IVOD) is simply an extension of VOD, in which additional features such as fast forward, fast rewind, and pause are implemented.

The flexibilities offered by interactive video on demand in a highly competitive paid television market, improved customer viewing experience with high quality content independent of time-bondage or repetitions, and options to provide for diverse content to global audiences are some of the key factors augmenting the interactive video on demand market. On the other hand, difficulties pertaining to achieving negotiable content licensing, the need to improve capacity of set-top boxes, and concerns pertaining to video piracy are a few restraints challenging the video on demand market.

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Nevertheless, possibilities of integration of a wide array of services along with VOD are expected to offer new opportunities to interactive video on demand market in the near future. In the past couple of years, a number of governments have come down hard on torrent websites. Additionally, due to growing competition as a result of the entry of new players, companies are luring newer consumers with lucrative offers. This is expected to positively impact the interactive VOD market in the long run.

The global interactive video on demand market can be segmented based on component, deployment, type, and geography. In terms of component, the global interactive video on demand market can be classified into software and services. Based on deployment, the interactive video on demand market can be categorized into cloud and on-premise. The cloud segment is anticipated to constitute a significant share of the global market. The cloud deployment model refers to hosted services that are delivered over the Internet.

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Benefits of cloud deployment such as accessing mission critical data remotely, cost savings on infrastructure, and enhanced collaboration are expected to propel the cloud segment during the forecast period. Moreover, the desire of organizations to switch to alternate business models such as Software-as-a-Service (SaaS) as it is perceived to offer better value for money and a plethora of features is expected to boost the segment. On-premise deployment refers to computation that is located within the physical confines of an organization. The on-premise segment is likely to hold a comparatively smaller share of the market. In terms of type, the interactive video on demand market can be divided into transactional, catch-up TV, subscription TV, near video on demand, push video on demand, advertising video on demand, and others.