You turn on your TV and select a movie or daily soap to watch just at a tap of a button. From bringing home the VCR player to watching whatever you want, whenever you want it, the technology has come a long way. Watching a movie or any video on demand allows you to have immediate access to video content on your smartphone, TV or laptops. In today’ age of speedy 4G internet, smartphones and instant deliveries, it is no wonder that video on demand, also commonly known as VoD, has gained popularity.
How does it work?
Video on Demand is a programming system that allows you to select and watch a video or listen to audio whenever and wherever you want. IPTV is the technology that is used to bring video on demand to TV and laptops. IPTV stands for Internet Protocol TV. It is the delivery of TV content over the IP network. IPTV I also used for live television, live media and time-shifted media where you can record the broadcast and catch-up later.
Video streaming service is not limited to watching videos on your smartphone or laptop. Internet television is another popular form of video on demand. Some airlines also provide their passengers with in-flight entertainment though individual screens attached to the armrest, seatback or via portable media players. Netflix and Amazon Prime are some other examples of subscription-based video on demand solutions while Netflix and Amazon Prime ask their subscribers for a fixed monthly rent for TV shows or movies, while other video on demand services may be dependent upon advertisers and sponsors.
The growth of Video on Demand
It wasn’t long ago when as kids, we used to wait for our favorite cartoon to broadcast on the TV. But today, the growth of video-on-demand (VoD), where you can stream or download content from an online source or a traditional TV package is creating extensive opportunities for viewers who have better control over what to watch, where to watch and how to watch.
In 2017, the global video on demand market was valued at USD 56.26 billion. By 2023, it is expected to reach a value of USD 93.99 billion. But this is the global scenario. The year 2016 was a milestone for Indian video streaming industry. With the launch of two primary video on demand providers, Netflix and Amazon Prime, the viewing habits of Indian consumers have also changed. And to aid the same, Jio came up with a massive mobile data wave. As a result, by the end of 2016, India had 160 million Video on demand service subscribers. As the mobile data I getting affordable day by day, this number will only grow in the future.
While Netflix and Amazon Prime are both catering to the same consumer market, they both have a different way of operating which makes them different from one another. Netflix charges a minimum of Rs. Five hundred per month for only video streaming subscription. While yearly charges for Amazon Prime are Rs. 499. Along with the video on demand service, Amazon offers plenty of benefits and promotions on their e-commerce store.
One of the reasons why both Amazon Prime and Netflix are the favourite video on demand companies in India is because they both have managed to maintain the local and regional touch to their content. Both the video on demand service providers have movies, web series and daily soaps in most of the major languages in India. People prefer Amazon Prime over Netflix for regional content for they cover more ground. Amazon prime recently signed up 14 comedians for a special comedy segment. Along with that, they are coming up with shows directed by India’s leading directors. Amazon prime also holds the prestige to become the first video on demand solution to come up with India’s first Hindi web series – Inside Edge.
Netflix, on the other hand, is more popular among the young generation. The younger generation is more intrigued by the sci-fi, teenage drama and Netflix’s productions along with the famous American and British soaps and web series.
There are many more video on demand service providers apart from Netflix and Amazon Prime such as Voot by Viacom 18, Hotstar by Star India Private Limited and Sony LIV by Sony Pictures. They all have a wide variety of TV Soaps than movies or web-series. Also, they are cheaper when it comes to the subscription amount. For example, Premium subscription of Hotstar is available for Rs. 190 per month. And it is a big competition for all the other video on demand companies. Hotstar has some A-level shows up their sleeves like Game of Thorns and Silicone Valley that are popular among the VoD subscribers.
With the rise of VoD, not only the viewing pattern has changed but the traditional advertising model has also changed in a big way. Addressable and programmatic ads allow advertisers to reach customers creatively. For ad makers, it is now possible to reach wider and perfect audience that watches a particular type of content or a specific language. The growing demand for Video on Demand has increased the importance of global and regional video on demand service providers. To survive the competition, video streaming services like Netflix has made tie-ups with Tata Sky. So, all the Tata-Sky subscribers will also be able to enjoy one of the best video on demand service. Other video on demand service providers have decreased the prices and are providing the consumers with better content day by day.
Video on demand companies are facing competition with the local cabal operators as well. Since the local cabal operators have access to more and quality local content, even today, they are the first preference when it comes to regional content that connects consumers better.
In the era of ‘instant everything’ where people are glued to their smartphone, video streaming services will outnumber the local cabal operators and will keep on growing.