How to make profit with video on demand services?
Video on demand (display) (VOD) are platforms which allow users to selectively enjoy content such as movies and TV shows. But, here they can choose to watch or listen anytime rather than having to watch at a specific broadcast time. This is the main USP of VODs. This process now followed by worldwide is commonly called cord cutting which means canceling or forgoing a pay television subscription or landline phone connection in favor of an alternative Internet-based or wireless service. While cable companies are sad at the prospect of seeing their profit margins fade away; VOD game-changers such as Netflix, Hulu, and Amazon Prime Video are conquering living rooms all over the world. In the fear of hype created by Video on Demand services, now television channels are digitalizing their contents and creating their own apps.
Let’s Check the Facts and Figures based on some studies
MarketsandMarkets, for example, foresees that the VOD market will grow from $25 billion in 2014 to $61 billion in 2019. It includes Academia to consumer retail to health products markets. North America is the most significant market in terms of revenue. Whereas, the markets with the most pulling are Asia, the Middle East, and Africa. In other words, when it comes to the potential for VOD market growth, there is no limit.
From 2013 to 2015 alone Netflix, Amazon Prime and Hulu plus saw their subscriber bases increase substantially, as seen in the graph below. Netflix alone achieved a 55% year-over-year growth rate in markets outside the country and a 23.3% growth rate in the U.S. It plans to reach Japan, Spain, Italy, and Portugal this year. It will eventually expand to almost every country by the end of next year.
Today, video on demand services can be found in 41% of U.S. homes. According to a 2014 Nielsen report, streaming homes are registering two hours and 45 minutes of total screen time, which is 48 minutes more than the traditional home with cable TV. Most of this time—one hour and six minutes—is spent watching time-shifted TV.
A recent study by Bell Labs also found that by 2020, viewers in the U.S. will be consuming 7 hours of video per day—mostly video on demand. The proportion of time spent using video on demand services will grow from 33% to 77%. This will cause a twelvefold increase in Internet-based video consumption every year.
It’s very easy to make a profit from VOD. For that, you have to create your own VOD platforms similar to famous Video on Demand services like Netflix or Hulu which customers are already familiar with and can showcase your valid expertise in any of the popular content formats existing today. Providing translation service with the VOD can multiply your international audience and increase your profit.
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