Digital Video Content Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

The global digital video content market reached a value of nearly USD 220.42 Billion in 2024. The market is assessed to grow at a CAGR of 11.30% during the forecast period of 2025-2034 to attain a value of around USD 642.99 Billion by 2034. The market is being aided by the rise of interactive video formats, the growing popularity of OTT platforms, technological advancements, the rising emphasis on user-generated content, the increasing trend of live streaming, and the expansion of 5G networks.

Global Digital Video Content Market Overview

Streaming platforms are increasingly investing in original content to build exclusive libraries and differentiate themselves from competitors. Platforms such as Disney+, Netflix, and Amazon Prime Video are increasingly prioritising in-house productions, with exclusive movies, shows, and documentaries attracting new subscribers.

The rise of interactive video formats such as 360-degree videos, choose-your-own-adventure content, and live polls aimed at providing users with more immersive and personalised viewing experiences is boosting the digital video content market value. In addition, the fusion of video content with e-commerce enabling users to purchase products in live streams, videos, or influencer posts is aiding the market. Furthermore, the rise of online learning and the increasing popularity of platforms such as Coursera, Khan Academy, and Udemy are boosting the popularity of video-based courses and lectures.

Global Digital Video Content Market Growth

Over the past five years, the digital video content industry has faced issues such as heightened rivalry, content piracy, and customer subscription weariness. Important players invested in original programming to draw viewers, expanded the variety of content they offered, and improved user experiences by providing tailored suggestions in order to address these problems. Furthermore, adopting adaptable subscription models - such as tiers supported by advertisements - helped them maintain customers and accommodate different customer preferences, which strengthened their market positions in the end.

The popularity of the digital video content market is growing in the OTT (over-the-top) industry, including Amazon Prime Video, Netflix, Hulu, and YouTube, which are gaining popularity around the world as a result of the increasing internet penetration. Consumers prefer to use the digital platform to buy digital goods and services from various digital platforms due to various added convenience and a faster and more efficient transaction process, thereby bolstering digital video content demand. The ease of payment via the digital platform also helps OTT streaming service providers to increase their services.

Key Trends and Developments

Rise of live streaming; growing adoption of 5G technology; expansion of virtual and augmented reality; and growing adoption of AI in content creation are favouring the digital video content market.

October 2024

Meta is expanding its video portfolio with the release of an AI-driven tool for creating and editing videos. Facebook will also give Reels content more prominent placement in an effort to increase user engagement and capitalise on the rising popularity of short-form video.

September 2024

Snapchat revealed a new AI video-generation tool for creators at the Snap Partner Summit that lets them make videos from text prompts and soon visual suggestions as well. Currently in beta on the web for a restricted number of creators, the tool is not yet available to the public.

July 2024

VideoAmp, the pioneering media measurement company changing the game in advertising, has announced its industry-first strategic collaboration with Snap Inc. Through this partnership, social technology platform Snap Inc will embed its first-party data, video and AR inventory into VideoAmp's cross-platform planning solution, which enables advertisers to make strategic budget allocations to efficiently reach audiences across linear TV, streaming and digital platforms.

May 2024

Google will launch its AI-based content creation tool for merchants, Product Studio, in the country within weeks. Among new functionalities in the Product Studio is generating videos, which can be short videos or GIFs, from just one image.

Rise of Live Streaming

The rise of live streaming is significantly revolutionising the digital video content market landscape. Live streaming has shifted from a niche activity to a mainstream form of video consumption, influencing sectors such as e-commerce, entertainment, social media, marketing, and gaming, among others. The increasing demand for live-streamed sports events, news broadcasts, and concerts through streaming platforms such as DAZN, ESPN+, Twitch, and YouTube is aiding the market. Retailers, brands, and influencers are leveraging live streaming to host real-time product demonstrations, engage with customers in an interactive format, and offer exclusive deals. In addition, the growing accessibility of live streaming platforms is democratising video creation and leading to the explosion of user-generated content (UGC).

Growing Adoption of 5G Technology

The digital video content market expansion is being aided by the growing adoption of 5G technology providing lower latency and faster download speed. 5G technology offers the ability to seamlessly stream high-quality video content, such as 4K and 8K videos with minimal buffering. The ultra-low latency of the 5G technology enables real-time and high-quality broadcasting of live events, including sports, concerts, and conferences, especially in remote and challenging areas. 5G enables the integration of interactive features, such as audience engagement, real-time polling, and direct communication between creators and viewers in live streaming events. Furthermore, 5G facilitates seamless streaming of 360-degree videos, live VR events, and VR games without lag or buffering. The low-speed, high-nature nature of 5G allows for cloud-based video production and editing, enabling creators and editors to collaborate in real-time and enhancing speeding up the post-production process, and making video production more efficient and cost-effective.

Expansion of Virtual and Augmented Reality (VR/AR)

The expansion of virtual and augmented reality (AR/VR) is creating lucrative digital video content market opportunities. AR and VR create fully immersive experiences and improve video content by overlaying digital elements onto the real world, hence improving user experience. Such technologies also support new content formats, including 360-degree video, and enable interactive and personalised storytelling, shifting the passive viewing experience to more customised and dynamic. With the rising popularity of AR-enabled devices (AR glasses, smartphones) and VR headsets, content creators are accessing new platforms for distributing their videos. The increasing demand for exclusive AR and VR content and a rising number of platforms offering subscription-based or pay-per-view models specifically tailored for VR content are creating new opportunities for content creators to monetise their works.

Growing Adoption of Artificial Intelligence in Content Creation

The growing adoption of artificial intelligence to enhance the production, creation, personalisation, and distribution of video content is shaping the digital video content market trends and dynamics. AI tools are increasingly automating video editing tasks, speeding up the editing process, lowering production costs, and reducing the need for manual intervention. AI technologies such as machine learning (ML) and natural language processing (NLP) are used to generate video content from images, scripts, and text inputs, enabling businesses, marketers, and content creators to rapidly produce video without extensive video production expertise. In addition, platforms such as Netflix, YouTube, and Amazon Prime, among others, use AI technology to suggest videos based on users' past viewing patterns. In the forecast period, the increasing integration of AI to create personalised video ads or experiences based on individual user preferences, past interactions, and geographical location is anticipated to aid the market.

Global Digital Video Content Market Trends

The rise of user-generated content, exemplified by TikTok, reshapes video strategies and engagement.

User-generated content (UGC) is becoming increasingly important in the digital video content business, fueled by platforms such as Instagram Reels and TikTok. Consumer preferences are shifting in favour of relatable, real material that appeals to viewers, as seen by this trend. In addition to increasing engagement, user-generated content (UGC) lowers platform production costs. TikTok's algorithm, for instance, encourages creativity and community by giving preference to user-generated videos. Short-form video formats are becoming more and more popular across platforms as brands work with influencers and regular creators. Such trends in the digital video content market are changing content tactics.

Opportunities in the Digital Video Content Market

Interactive VR and AR content presents a significant opportunity for differentiation and audience engagement.

Interactive and immersive content, such as virtual and augmented reality, will represent a key opportunity for players in the digital video content market. Now more than ever, consumers are seeking experiential entertainment, and companies will be able to build on this trend to create new innovative offerings where viewers will be engaged in a new way. To take a competitive edge in the market, investment in VR/AR technology and experiences like these is crucial for players, leading on to digital video content market opportunities. Further collaboration with content creators and technology providers can make these offerings even more attractive, thereby attracting a greater number of audiences and increasing revenue potential.

8K video streaming, led by companies like LG, enhances viewing experiences with ultra-clear resolution.

8K video streaming is among the newest technologies that have entered the market of digital video content to offer far higher resolution than the other commonly available formats, supporting the digital video content market dynamics and trends. Companies, such as LG, are to the fore in this field, presenting their 8K OLED TVs, through which 8K streaming is supported by YouTube and Netflix, and can provide consumers with images that are crisp and clear with rich colour and attract consumers seeking quality visual content. With the infrastructure getting better, there will be a surge in 8K streaming capabilities amongst content providers.

Market Restraints

Piracy, regulatory challenges, high production costs, and subscription fatigue constrain digital video market growth.

The prevalence of piracy, which is a major constraint to the market because it eats into the revenue generated by legal platforms and acts as a disincentive for content producers from developing new programs, is rife.

Variable regulations within geographies could further constrain further market expansion and make licensing negotiations even more complicated. High cost of original content acts as an entry barrier against smaller firms, leading to digital video content market challenges. Last but not the least, the consumer fatigue arising out of subscription fatigue, where the subscriber gets confused in subscribing to numerous subscriptions, may reduce interest levels and lead to cancellations.

Digital Video Content Industry Segmentation

“Digital Video Content Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

The type of digital video content can be divided into the following:

• Video-on-Demand (VOD)
• Online Video

The industry can be broadly categorised based on business type into:

• Subscription
• Advertising
• Download-to-Own (DTO)
• Others

Based on the devices, the industry can be segmented into:

• Laptop
• PC
• Mobile
• Others

Based on region, the market can be segregated into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global Digital Video Content Market Share

By Type Analysis

VOD and online video thrive as consumers seek convenience and personalized viewing experiences.

Video on demand increases in popularity as consumers opt for the personalised experience of watching content on their own, thus a user can watch more hours of programmes at his or her convenience. Popularised by Netflix and Hulu among other organisations with its movies and series catalogues, just like online video content that thrives, including the user generated videos on websites such as YouTube, by the growing influence of media integration in social sectors. As per digital video content market analysis, improvements in the technology of streaming enhance both types, making high-quality content accessible to a wide variety of devices, hence answering the multitude of diverse audiences' preference.

Market Analysis By Industry

Subscription models and targeted advertising boost demand, alongside increasing interest in Download-to-Own services.

The growth of the subscription models is primarily driving demand in the digital video content market. More consumers are now looking for ad-free, on-demand access to large libraries. Advertising models are also succeeding with targeted ads and more and more engaging viewers on YouTube, among others. As per digital video content industry analysis, download-to-own services are gaining prominence where consumers want to own high-quality content for viewing in an offline mode. Smart TVs and mobile devices have increasingly become a source of access, which increases demand from several types of businesses in order to fulfil the wide cross-section of consumer tastes.

Devices Insights

Mobile devices and smart TVs enhance accessibility, driving demand for digital video content.

Mass adoption of mobile device usage has also heightened the need for content in the digital video space since consumers can now watch movies and videos anywhere, anytime. Laptops and PCs remain to-date the main platforms for viewing high-definition films and gaming experiences, supporting the digital video content market revenues. The smart use of TVs and streaming devices allows for home entertainment options that are even more exciting, and hence draws in a wider audience. With better internet speed availability and entertaining original content from source places like Netflix and Hulu, the overall demand increases.

Digital Video Content Market Regional Insights

North America Digital Video Content Market Opportunities

One of the opportunities identified in the North America digital video content market is the growing adoption of streaming platforms such as Netflix, YouTube, Hulu, and Disney+. As of 2024, the United States boasted the highest number of Netflix users and accounts, with more than 66.7 million subscribers. Similarly, the United States has over 239 million users, followed by India (462 million). Hence, an increasing number of customers shifting from traditional TV to on-demand video streaming is surging the demand for digital video content. In addition, the growing use of AI and machine learning in video production as well as content distribution and personalisation are expected to positively impact the market in the coming years.

Europe Digital Video Content Market Dynamics

As per the Europe digital video content market regional analysis, the growing popularity of live streaming of major sports leagues such as La Liga, Premier League, and Bundesliga is aiding the market. Broadcasters are partnering with streaming services to provide live sports via digital platforms. In March 2023, a German sports streaming service Dyn, available via smart TVs, PCs, laptops, tablets and smartphones, was launched. The streaming service is intended to show matches of the German teams in the EHF Champions League and the EHF European League. Moreover, the growing adoption of immersive technologies such as augmented reality (AR) and virtual reality (VR) by content creators to provide 360-degree videos and interactive video formats is driving the market.

Asia Pacific Digital Video Content Market Trends

The digital video content demand growth in the Asia Pacific is being fuelled by the growing shift from traditional cable TV to digital video services. The rising demand for on-demand content over linear broadcasting and the expansion of local streaming platforms like Hotstar, Viu, and iQIYI in countries such as India, China, South Korea, and Japan are aiding the market. In the region, local OTT platforms are focusing on regional content, which caters to diverse cultures and languages. In addition, the growing trend of mobile-first consumption, especially in countries like Vietnam, Indonesia, and India, is aiding the market.

Latin America Digital Video Content Market Insights

The digital video content demand forecast in Latin America is being driven by the growing accessibility to the internet and the expansion of mobile data infrastructure. The increasing rollout of 4G and 5G networks to enable the faster streaming and higher-quality content delivery is propelling the market. Reportedly, 5G is likely to account for 43% of overall mobile subscriptions in Latin America by the end of 2026. With countries like Mexico and Brazil emerging as hotspots for competitive gaming, digital platforms are increasingly diversifying their offerings to offer gaming-related content, interactive fan experiences, and live-streamed tournaments.

Middle East and Africa Digital Video Content Market Drivers

The growing adoption of smartphones and the increasing affordability of mobile data is creating lucrative digital video content market opportunities. By the end of 2.02 trillion of the people in MENA (64% of overall population) subscribed to a mobile service whereas 49% of the region’s population used mobile internet (327 million users). In the region, streaming platforms are increasingly investing in producing and acquiring regional content in Arabic and other local languages to cater to diverse linguistic landscape.

Competitive Landscape

The digital video content market players target personalization through content recommendations and interactivity with the user. Strategic library expansion in high-value, exclusive original programming is targeted as another critical factor leading to subscribers. Digital video content companies are also investing in high-end streaming technology to enhance user experience and increase access across a range of different devices. Targeting through advertising and subscription models, for revenue maximisation, are also prioritised, ensuring that there will be diverse preferences fulfilled by the content or package marketed.

Google LLC

Founded in 1998, Mountain View, California, Google LLC provides an immense list of digital video content through its service YouTube. It offers user-generated videos, music videos, along with other original programming content. With this, YouTube Premium is even more attractive as it offers ad-free viewing along with exclusive content, which thus solidifies its rank in the digital video landscape.

Hulu LLC

In 2007, Hulu LLC was established with its headquarters based in Los Angeles, California. This service is a large library of digital video content on-demand, containing current and classic TV shows, movies, and original series. Different subscription options-ad-supported and ad-free tiers-have made Hulu able to cater to the differentiated tastes of viewers while continuously increasing its exclusive programming.

Facebook Inc.

Headquartered in Menlo Park, California, Facebook Inc. is the company behind one of the most popular online platforms, including sharing digital video content uploaded by users, launched in 2004. Now, the company offers the company's feature, Facebook Watch, to present original programming and user-generated content to engage its large user population and build a community around video entertainment.

Snap Inc.

Founded in 2011, Snap Inc. is headquartered in Santa Monica, California, and is working on its Snapchat application, which allows users to provide and share video pieces with one another in order to entertain them. The company also comes equipped with a new product: Snap Originals, an exclusive series created for viewing on mobile, targeting a younger audience through innovative forms of storytelling.

Other Digital Video Content market players include Amazon.com Inc., Netflix, Inc., Apple Inc., AT&T Inc., and Comcast Corp., among others.