Trends 2016: The surging phase of Video on Demand

By Rajiv Vaidya

The market potential for online content viewing is huge. Various factors such as smartphone penetration, launch of 4G and diverse content are the key factors that will drive the online video on demand industry in 2016. CISCO’s Visual Networking Index Report (VNI) suggests that online video traffic will contribute 65% of all IP traffic in India by 2018. As much as 70 billion minutes of video content will be viewed across India per month. Listed below are the trends which will impact this industry in a major way.

1. 4G penetration - One of the key trends that will drive growth in 2016 is 4G penetration. Streaming video requires high fidelity networks with consistent speeds of at least 2-3 MBPS to deliver a buffer free experience. The launch of 4G services, especially by the likes of Reliance Jio should dramatically reduce data costs thus increasing usage of video on demand(VOD).
2. Platform for Indie movies- Indie and critically acclaimed movies that are carving its own niche are constantly struggling to find a theatrical release. However, lately with the viewers waking up to fresher and diverse content, most video on demand platforms are investing in these movies.
3. Increasing consumption of mobile devices - According to a Deloitte report, smartphone devices across the globe grew at a CAGR of 17% as compared to 9.5% growth in all mobile devices. The smartphones crossed 2 billion mark in 2014 and are expected to reach 4.6 billion by 2019. This increase in the number of mobile devices is providing immense opportunity for the industry to grow globally. Infact, Spuul has seen that VOD platforms in India see mobile consumption in excess of 70%. With more smartphones in the hands of the people, there is wider potential to provide diverse content for the players in the VOD space.

(The author, Rajiv Vaidya, is CEO, Spuul India)