I use these monthly posts to pick out the stand-out stories from this ever-updated stats hoard – and video-on-demand trends from across the US, UK and some lesser-discussed global markets have really caught my eye lately.
The US still looks to be a leading global light in VoD consumption
Fresh data published by Strategy Analytics looks at some interesting trends in the growing US video streaming market and how this relates to DVD and downloads consumption respectively.
Altogether US consumers spent more than $6.6bn on video streaming in 2016 – up 22% on 2015.
This is clearly eating into the physical format market, with DVD buying down 7% and DVD renting down 10% over the same period.
Paid-for downloads are seeing similar levels of growth, but Strategy Analytics expects a further $1bn to be added to US consumer streaming spend over the next 12 months.
But the UK lags
The story in the UK is slightly different.
While many consumers are seeing the appeal in Netflix, Amazon Prime Video and Hulu etc., bought DVDs still account for a bigger share of the market (40%) than streaming (33%).
Comparatively, UK consumers have spent £742m (around $1bn) on streaming services in 2016. Though this is also up significantly on 2015, boasting 26% growth year-over-year.
And VoD is getting a foothold elsewhere, including MEA…
Data from other research houses also casts light on more markets around the globe.
McKinsey’s recent report, Telecommunications industry at cliff’s edge: Time for bold decisions, looks at video consumption in the Middle East and Africa.
VoD with ads is proving most popular with consumers.
In developed parts of the region, 47% of people have access to ad-based video-on-demand, ahead of transactional video-on-demand at 27%.
ComScore has also just released some in-depth video stats for Brazil, which sees Netflix begin to make its mark in the country.
However it is fair to say Netflix is some way behind the biggest video providers, YouTube and Facebook, in a market which adores these social brands.
But Netflix is certainly the key driver
While the video service might be some way off being a presence in emerging markets, its success in the US – accounting for 53% of the video streaming market – bodes well for markets where VoD is seeing good growth.
Globally, the service now boasts over 81m members in 190 countries [Netflix’s own data].
It’ll be unsurprising to see VoD overtake DVD purchases in the UK very soon, as well as continued growth in the US.
As for markets which are heavily dependent on mobile connections, pay TV and mobile TV will feature heavily in the future digital video mix.
Download the Internet Statistics Compendium for further data on this topic and more.