Video streaming services have been increasing in number over the past decade. What started as a novel service for movie lovers quickly became the norm, with many channels out there vying to garner attention to their unique streaming service.
The rise of streaming services has raised several critical questions. Questions regarding sustainability, supply vs. demand, and how long the trend will last. The only way to answer these questions is to try and analyze the current state of the industry.
Video Streaming Market Values
According to Brand Essence Research, the global video streaming market brought in around $229.19 billion USD in 2018. Based on previous patterns, their estimates assumed that there would be a significant drop in 2020.
However, Grand View Research found that there has been a steady increase in both live video streaming and non-linear video streaming. The rise has been helped along by a couple of factors, including global events (which resulted in lockdowns across the world) and the appearance of new popular streaming platforms.
There’s one correlation in the industry that cannot be ignored. The growth of streaming services only occurs in concurrence with internet usage. In other words, the streaming industry is reliant on internet access – and prices.
This would explain why so many streaming services have thrown their weight in the battle surrounding Net Neutrality. The outcome of the Net Neutrality battle will have a potentially strong impact on the streaming industry, should internet users face data throttling.
Certain vital players have dominated the streaming industry in the past, including Netflix, Amazon Web Services, Hulu, etc. Newer heavyweights include Disney+ and HBO Max, though they are far from the only streaming platforms to rise in recent years.
The success of Disney+ and its original content will likely influence the way other platforms structure business plans and streaming packages in the foreseeable future. Disney+ launched with a sizable backlog and has been consistently adding high valued content to the platform.
North America has been one of the dominating countries regarding streaming services – both in use and platforms. According to one report, about forty percent of North American internet usage goes to streaming services.
Overall, the predictions are relatively optimistic for streaming platforms. Again, this would explain the sudden rise in dozens of new services. Recent emerging entrants like Vyre Network, which is home to a global digital distribution multi-platform service, is a great example of this. They have a mission to represent a visually driven culture of millennials and Generation X, Y, and Z’s expression of the visuals and manage a global portfolio of award-winning content.
According to Globe Newswire, the Global Video Streaming Market is expected to around 12.2% in CAGR between 2020 and 2027. In other words, the expected value of streaming services will be approximately $843.1 billion USD by the time 2027 rolls around.