Video-on-Demand - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The Global Video on Demand Market was Valued at USD 56.26 Billion in 2017, and is Expected to Reach a Value of USD 93.99 Billion By 2023 at a CAGR Of 8.93%

The video-on-demand market size was valued at USD 126.16 billion in 2025 and estimated to grow from USD 140.63 billion in 2026 to reach USD 242.03 billion by 2031, at a CAGR of 11.47% during the forecast period (2026-2031). This report is Segmented by Business Model (Advertising Video-On-Demand, and More), Delivery Technology (Pay-TV VoD, Hybrid Broadcast Broadband TV, and More), Device Type (Smart TVs, Pcs and Laptops, and More), Content Genre (Sports, Kids and Family, and More), End-User (Residential/Individual, Educational Institutions, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Global Video-on-Demand Market Trends and Insights

Rapid Adoption of AVOD Platforms in Emerging Asia-Pacific Markets

Advertising-supported tiers reached 28% of streaming revenue in Indonesia, the Philippines, Vietnam, and Thailand by late 2025, double the 2023 level. Low credit card penetration keeps many viewers from paying monthly fees, so carriers and digital wallets now handle most transactions, reducing payment friction by 60%. Falling mobile-data prices in India, where a gigabyte costs less than USD 0.10 in 2025, make high-definition viewing affordable for mass users. Advertisers, facing third-party cookie limits, shift to brand-safe video inventory that offers contextual placement without user tracking. Light ad loads and localized content quotas deepen engagement, so churn remains lower than on pure subscription services.

Expansion of Ultra-High-Speed Broadband Rollout in North America and Western Europe

United States fiber-to-the-home lines topped 50 million in mid-2025, up 22% from 2023, after federal grants encouraged overbuilds. The European Gigabit Infrastructure Act helped lift symmetrical gigabit speeds to 18% of households by early 2026, double the 2024 level. Reliable multi-stream 4K playback cuts buffering complaints, trimming churn for major platforms. Fixed-wireless 5G added 12 million U.S. broadband lines in 2025, closing the rural gap and creating new addressable homes. Streamers now sell plans by resolution instead of geography, unlocking higher revenue from previously underserved clusters.

Escalating Content Licensing Costs Squeezing Platform Margins

Studios and sports leagues exploited bidding wars in 2025, pushing third-party licensing to as high as 45% of mid-tier revenue. Warner Bros. Discovery renewed its HBO Max output deal at a 30% premium, while the USD 76 billion National Basketball Association package forces each streamer to shoulder more than USD 2 billion a year. Rising costs crowd out budgets for technology upgrades and originals, creating smaller catalogs that drive churn. The European Digital Markets Act may eventually curb exclusivity, but enforcement remains uncertain. Until then, only the largest platforms can afford marquee rights without bleeding margins.

Other drivers and restraints analyzed in the detailed report include:

• Increased Content Investments in Local-Language Originals by Global Streamers
• Bundling of VoD with Telecom and Pay-TV Subscriptions Driving Uptake in South America
• Rising Churn Rates Due to Subscription Fatigue in Matured SVOD Markets

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Subscription video-on-demand held 47.23% of 2025 revenue, the largest video-on-demand market share at the model level, yet advertising video-on-demand is projected to expand at 12.31% a year through 2031 as advertisers follow audiences into brand-safe streaming environments. That growth is reshaping the video-on-demand market, as AVOD now attracts budgets that were once reserved for display ads reliant on third-party cookies. Transactional pay-per-view maintained an 8% slice of 2025 revenue, driven by high-value live events such as boxing and concerts that justify one-off pricing. Hybrid services combining ads and subscriptions captured 18% of the market in 2025, giving platforms a ladder of price points that cushions churn during economic uncertainty.

The AVOD scale is bolstered by flexible payment options, including carrier billing and e-wallets, which help bypass credit card shortfalls in Southeast Asia. Platforms also use ad-supported tiers to reacquire former subscribers who left due to monthly fees, thereby lowering the average acquisition cost. Meanwhile, SVOD growth is slowing as households juggle multiple services, so many operators repackage flagship catalogs into lower-priced bundles. Pay-per-view remains niche but profitable because sports promoters and artists monetize fans who are willing to pay premium prices for exclusivity. Across models, data-driven ad formats and tiered subscriptions give operators parallel revenue streams that hedge against saturation in any single approach.

Over-the-top streaming accounted for 59.42% of delivery revenue in 2025, the highest delivery-format video-on-demand market share, and is forecast to rise at a 12.27% CAGR to 2031. Internet protocol television VoD retained a 22% share because incumbent telcos still bundle managed video with broadband, but the gap is widening as cord-cutting accelerates. Pay-TV VoD fell to 12% of 2025 revenue and is declining 3% a year as set-top boxes lose relevance. Hybrid broadcast broadband television closed 2025 with a 7% slice, mostly in Europe, where public broadcasters extend catch-up catalogs without forcing new apps.

Cloud-native content delivery networks trimmed median latency to 180 milliseconds in early 2026, a 40% improvement that enables real-time social features and synchronized watch parties. Edge caching reduced backbone bandwidth by 35%, freeing up capital that operators can redirect to higher bitrates and HDR support. The migration to app-based distribution also lets platforms push updates weekly instead of waiting for firmware cycles tied to legacy hardware. IPTV providers increasingly adopt OTT middleware so their managed networks can interoperate with open internet delivery. These technology shifts collectively enlarge the addressable video-on-demand market size by bringing premium streams to bandwidth-constrained regions.

Complete Report Scope:

• By Business Model
  • Subscription Video-on-Demand
  • Advertising Video-on-Demand
  • Transactional/Pay-per-View
  • Hybrid and Other Models
• By Delivery Technology
  • Over-the-Top (OTT) Streaming
  • Internet Protocol Television (IPTV) VoD
  • Pay-TV VoD
  • Hybrid Broadcast Broadband TV
• By Device Type
  • Smartphones and Tablets
  • Smart TVs
  • PCs and Laptops
  • Connected Streaming Devices
  • Other Device Types
• By Content Genre
  • Entertainment and Drama
  • Sports
  • Kids and Family
  • Educational and Documentary
  • Other Content Genres
• By End-User
  • Residential / Individual
  • Commercial and Enterprise
  • Educational Institutions
  • Public Sector and Government
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East and Africa
    • Middle East
      • United Arab Emirates
      • Saudi Arabia
      • Rest of Middle East
    • Africa
      • South Africa
      • Egypt
      • Rest of Africa

Geography Analysis

North America retained a 36.38% video-on-demand market share in 2025, but its 9.8% CAGR through 2031 trails the global pace, as household penetration is already high and churn reaches 47% annually. The United States generated 82% of regional revenue, helped by 50 million fiber-to-the-home lines that enable simultaneous 4K streams and reduce buffering-related cancellations. Canada’s 5% domestic-content levy on foreign streamers raises compliance costs but also stimulates local production, which lifts engagement. Mexico expanded 14% in 2025 as América Móvil bundled Claro Video with wireless plans, widening reach in secondary cities. Together, these factors keep the North American video-on-demand market on a mature yet stable growth path.

Asia-Pacific is growing fastest, advancing at a 12.42% CAGR as mobile-first viewing, localized originals, and ad-supported tiers expand the addressable base. India accounts for 28% of regional revenue, with free Indian Premier League streams drawing 32 million peak concurrent viewers and proving that live cricket can anchor an AVOD model where monthly willingness to pay stays below USD 2. China delivers 34% of Asia-Pacific revenue, though data-localization mandates confine foreign entrants, while Tencent Video, iQIYI, and Youku hold 76% of the domestic share by tying drama libraries to super-app ecosystems. Japan and South Korea together account for 17% of regional income, as Netflix and Amazon commission anime and K-dramas that find global audiences, reinforcing a feedback loop that finances more local storytelling.

Europe, South America, and the Middle East and Africa jointly contribute 38% of global revenue, yet display uneven trajectories. Europe’s 24% share grows at 10.5% a year, restrained by antitrust probes into exclusive sports rights and data-privacy limits on targeted ads. South America accounts for 7% of revenue, but telecom bundles push Brazilian and Argentine broadband adoption above 40% among broadband customers and trim standalone churn by roughly 25%. The Middle East and Africa command 5% of revenue yet post a 13.1% CAGR as Arabic dramas and smartphone consumption propel markets in Saudi Arabia, the United Arab Emirates, and South Africa, although low digital-payment penetration still caps monetization potential. Together, these regions diversify the global video-on-demand market size and buffer operators against saturation in any single geography.

List of Companies Covered in this Report:

• Amazon.com, Inc.
• Netflix, Inc.
• The Walt Disney Company
• Warner Bros. Discovery, Inc.
• Apple Inc.
• Alphabet Inc.
• Comcast Corporation
• Paramount Global
• Roku, Inc.
• Tencent Holdings Limited
• Alibaba Group Holding Limited
• Baidu, Inc.
• Zee Entertainment Enterprises Limited
• Reliance Industries Limited
• Novi Digital Entertainment Private Limited
• KT Corporation
• Rakuten Group, Inc.
• Sky Limited
• Telstra Corporation Limited
• PCCW Media Limited
• Globo Comunicação e Participações S.A.
• Middle East Broadcasting Center FZ LLC
• MultiChoice Group Limited
• Canal+ Group SA
• Vubiquity, Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support