VOD Is Spreading Globally

It’s no secret that video on demand (VOD) and subscription video on demand (SVOD) have been growing in popularity over the last few years, with 50 percent of internet users aged 16 and over regularly using SVOD technology to watch television and movies in the US. Now, however, the popularity of VOD and SVOD is spreading even farther, with research showing that countries including South Africa and Brazil are starting to favour the technology, too.

Brazil has been developing at an incredible rate. Today, 60 percent of the country’s population are internet users (just above the average in South America). Of these people, a whopping 49 percent use VOD services. These figures, which come from research conducted by Conecta and Gallup International, show that, though the country does not have as many people online as more developed countries, when it comes to watching VOD, Brazil’s internet users are just as interested as those in the US and the West.

At the same time, in South Africa, since the launch of local VOD service ShowMax a year ago, the country has watched more than 700 years’ worth of content back to back. Although currently only 35 percent of South Africans subscribe to an internet television service, that figure is expected to rise to 65 percent within the next six months – with most citing the high cost of internet access as their biggest deterrent to date.

It appears, then, that where there is affordable internet access, there is a demand for VOD. This means that we can expect not only to see the VOD industry continue to grow in countries where internet penetration is already high, but that the industry will receive a further boost as more and more people gain access to the internet across the globe.

Currently, only around 40 percent of the global population has internet access. Of that figure, 26 percentcurrently pay to use a VOD service. The remainder who haven’t subscribed to a SVOD service may be put off by poor quality internet, expensive internet providers, or a lack of service providers in their countries. But, as global internet quality increases, as prices go down, and as more local players enter the VOD industry, this figure will undoubtedly rise.

Last year VOD generated $49 billion. In 10 years’ time, the industry is expected to be worth a massive $108.6 billion. So, as the figures from Brazil and South Africa show, the convenience afforded by VOD and SVOD is helping to drive global VOD and SVOD revenue. And as worldwide internet access continues to improve, the VOD industry will continue to grow rapidly.