Nearly two-thirds of global respondents (65%) in a Nielsen online survey in 61 countries say they watch some form of video-on-demand (VOD) programming.
That includes long-and short-form content, but the survey also showed that viewing habits aren’t the only things changing, and as such, viewers aren’t the only ones who stand to benefit from this new landscape. Traditional advertising models are changing as innovative technologies such as programmatic and addressable ads allow advertisers to reach consumers in new and creative ways.
The Nielsen research found that many traditional TV providers, including networks and multichannel video-programming distributors (MVPDs), are re-evaluating their business models in order to adapt better to consumers’ evolving habits. While it’s clear that business-as-usual methods won’t work in a landscape that is changing so rapidly, the field is wide open, as all players are looking to expand share.
“Today’s media landscape is complex, but the growth of video-on-demand programming services can create opportunities for all players in the media ecosystem,” said Megan Clarken, president, Nielsen Product Leadership. “For audiences, advertisers and content providers alike, advantage will be gained with an in-depth and keen understanding of not just how consumer viewing dynamics are changing, but why they are changing. Two things were never truer than they are today: content will always be king, and consumers will continue to demand greater control and customisation of the viewing experience. Providers who exceed standards on both fronts will have an advantage.”
The global VOD services market was worth $48.93 billion in 2015, with the market poised to increase at 8.3% compound annual growth rate (CAGR) during 2016-2026, according to Future Market Insights (FMI).