Why video on demand is the future of audiovisual content (The Numbers Speak)
Video on demand (VOD) is a system for watching audiovisual content on demand, which in recent years has done nothing but grow.
To get an idea, the user chooses what they want to watch, paying only for the content they are interested in.
This is the way famous platforms such as Netflix, Amazon Prime Video or Disney + work. Big giants that, just by hearing their name, we already know that we are facing a major project.
Benefits of video on demand, or why it's growing like crazy
Although you will find out later why video on demand is the future of audiovisual content in figures, first I want to talk about its advantages, both for the consumer and for the video on demand creator.
In the end, it is the benefits of a business model that make the difference between failure and a successful trajectory. In the case of video on demand, its advantages, or the way it improves the lives of both creator and consumer, are the key to its success:
- No fixed schedules: When the creator publishes the content on a platform like PLAYBAK, the user can watch it whenever they want. Once they subscribe to the channel or buy the video on demand they are interested in, they will have access to it 24 hours a day. In the 21st century, where no one has a second to lose, this is a great advantage.
- Multiple video services: Video on demand encompasses almost every type of audiovisual content you can imagine: films, live streaming and courses on a thousand subjects, the latter being the most demanded by the online community (yes, there is a lot of information on YouTube, but we all want to have those exclusive tips that we don't always know how many people have reached)
- Subscriptions tailored to you: One of the main advantages of video on demand is that it allows users to pay only for what they consume. There are different types of subscription: from what is known as SVOD (Subscription video on Demand) to watch 100% of the content published on a platform, to the exclusive TVOD (Transactional video on Demand) in which the user pays only for the content consumed. There are also free video modalities with advertising, and PREMIUM subscriptions in which users pay extra to enjoy premieres and new releases.
- Greater parental control: There is a lot of controversy about censorship of platforms such as YouTube and Instagram. However, we must bear in mind that children also consume audiovisual content, and parents want to protect them from information that may be inappropriate for their young minds. With video on demand, parents have more control over the content our children consume, as we pay a fee for such content, making us aware of what they do and do not have access to.
Why video on demand is the future of audiovisual content
The figures speak for themselves, in 2019 everything started to grow:
According to Barlovento Comunicación, in 2019, 1 in 4 households already had a streaming service, one of the main reasons being the freedom of schedules in which video on demand allows content to be consumed.
On the other hand, we are not talking about an exclusive consumption of video on demand, but of a total of 20% of the time spent watching television, therefore, we deduce that video on demand is not (at least at that time) a substitute for television, but rather a complement to it, with demand on the rise.
We all know how much the world has changed since 2019, when the word pandemic was not part of our everyday vocabulary.
It was during 2020 that we were all reconciled with home life, forced to live within four walls, we were forced to reinvent our way of looking at entertainment.
The video on demand boom in 2020
A clear example of how the pandemic translated into a big boost for streaming video is the Netflix platform. While in the first half of 2019 the platform gained a total of approximately 12 million new users, in the first half of 2020 the total number of registrations rose to 26 million.
On the other hand, we have the case of Disney +, which joined the video on demand bandwagon almost at the last minute, achieving record results. In just 6 months of life, the leading platform in film releases had more than 60 million users. We are talking about June 2020.
By January 2020 Amazon Prime Video had already surpassed 150 million users, and now boasts more than 200 million, thanks in part to the "closed ecosystem" that allows users to enter the streaming video platform by subscribing to Amazon Prime.
Global video on demand news
While we tend to know companies' business results year-on-year, you're probably wondering if this meteoric rise is continuing, and how it's faring in the most recent news:
According to a recent report by OBS Business School streaming video platforms already account for 25% of the current TV market, a percentage that is expected to continue to grow in the coming years.
Today, video on demand platforms have more than 1 billion users globally, far outstripping cable, satellite and DTT.
To the figures on paper we must add "what is not seen", as many families, or even friends, share the same streaming video account. It follows that the number of consumers of video on demand is actually much higher.
On the other hand, the user of streaming video platforms is not characterised by being monogamous in this sense, but many of us choose to subscribe to several platforms simultaneously, thus enjoying all the content we want.
Video on demand tutorials, the future of the self-learner
Today, video on demand tutorials, which consist of complete courses that are delivered via streaming video, are becoming very popular.
This method of self-teaching has always been widely used, being a common method for self-help courses that were taught on cassette or DVD in the second half of the last century.
In recent years, tutorials have been reinvented, being very present on video on demand platforms that offer more complete and exclusive content than can be found on free platforms such as YouTube.
Is video on demand a bubble?
If we look at history closely, we see that all what we know as "bubbles" are sectors that grow rapidly and decline at the same speed. They have a fast and intense, but very short trajectory.
Netflix started its journey in video on demand in 2007, although the company was born in 1997 offering DVD by mail services, we are not talking about a particularly fast growth.
On demand television has been slowly but steadily creeping into our homes. This is a good indicator that it is here to stay and that it will only continue to grow at its own pace. At PLAYBAK we are committed to it, working to offer you a streaming video platform adapted to the needs of consumers and users.
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