3 video on demand trends that will rule the industry in 2016Author : AZIndia News Desk
Mumbai, Jan 3(AZINS) 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 approximately 65 percent of all IP traffic in India by 2018. About 70 billion minutes of video content will be viewed across India per month. Listed here 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 viewers waking up to fresher and more diverse content, many video on demand platforms are investing in these movies. Movies such as Jal and Ankhon Dekhi have connected to audiences across diaspora and have been successful on the digital platform. Numerous online video streaming platforms showcase a lot of great independent movies and other video content, which typically do not get massive theatrical releases due to their lower budgets.
3.Increasing consumption of mobile devices: According to a Deloitte report, smartphone devices across the globe grew at a CAGR of 17 percent as compared to 9.5 percent growth in all mobile devices. Smartphones crossed the 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. Video streaming website Spuul has seen that VOD platforms in India see mobile consumption in excess of 70 percent. 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 is Rajiv Vaidya, CEO of Spuul India.