Transactional Video on Demand

Transactional Video on Demand

Transactional Video on Demand (TVOD) is a distribution model in the digital entertainment industry where users pay for individual pieces of content on a per-view basis. In the TVOD market, consumers can rent or purchase specific movies, TV shows, or other video content, gaining access to the content for a limited period or indefinitely.

The Transactional Video on Demand Market was valued at 11.46 billion in 2022 and is expected to grow at a steady rate of around 7.2% in the forecasted period (2023-2030) owing to the proliferation of smartphones and other smart devices. Also, Content owners are using TVOD (Transactional Video-on-Demand) streaming services to fill gaps in their distribution and monetization strategies, particularly by offering high-quality content to international audiences on a pay-per-view basis, thereby increasing the value of the market. For instance, take the case of The Batman (2022), produced and distributed by Warner Bros. Pictures. This movie was first released in theaters on March 1st, 2022, and later made available on HBO Max on April 18th, 2022, allowing content owners to generate additional revenue through transactional viewing.

• Based on the transactions, the market is segmented into EST, DTR, and PPV. Among these, the DTR segment is gaining significant traction in the TVOD market due to its convenience and flexibility. This model offers more freedom compared to traditional rental models, where content must be watched within a set time frame. Furthermore, DTR enables users to access content without an internet connection, making it ideal for long trips or areas with limited connectivity. Also, the rise of streaming services like Amazon Prime Video, iTunes, and etc. has contributed to the growth of the DTR segment, offering a wide range of titles available for downloading.
• Based on the connecting devices, the market is segmented into computers, mobiles and T.V. Among these, mobile devices have emerged as the most popular platform for TVOD services. The convenience and accessibility of smartphones and tablets have made this segment account for the majority of share of the market. This trend is expected to continue in the coming years, with mobile devices projected to dominate the TVOD market share.
• Based on the Applications, the market is categorized into eLearning, entertainment, and others. Among these, Entertainment has emerged as the largest application segment in the TVOD market. With the rise of streaming services such as Amazon Prime, consumers now have access to a vast library of movies, TV shows, and original content at their fingertips. The convenience and affordability of these services have made them incredibly popular, with millions of subscribers worldwide and thereby adding value to the market.
• For a better understanding of the market adoption of transactional video on demand, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The Transactional Video on Demand (TVOD) market in North America has experienced remarkable growth, shaping the digital entertainment landscape across the region. This surge can be attributed to a confluence of factors that have collectively propelled the adoption of TVOD services. The United States, being the largest market in North America, has been at the forefront of this transformation. With a sophisticated digital infrastructure, high internet penetration, and a tech-savvy population, the U.S. has witnessed a significant shift in consumer behavior towards on-demand content consumption. Also, to provide more options for consumers and expand the reach of TVOD there are several investments. For instance, Amazon Prime Video invested $8.45 billion in original content for 2023, announced on January 19th, 2023.
• Some of the major players operating in the market include Coursera; Udemy; Khan academy; Skillshare; Apple TV+; Amazon prime video; Google play; YouTube; iTunes; AT&T.