The video streaming market is in a rampant growth phase, with analysts estimating it will be worth a whopping $240 billion by 2030. Of course, this is no surprise given the current popularity of streaming services like Netflix and Amazon Prime, but the trend runs deeper than entertainment.
At the start of 2020, the global streaming market was only worth $50 billion, but analysts believe the sector’s compound annual growth rate will exceed 21% in the next nine years, as demand for on-demand video streaming services continues to grow exponentially.
Covid-19 Has Boosted the Popularity of Live Streaming
One of the main reasons for the phenomenal growth of the video streaming market is the pandemic. Since the start of the Covid-19 pandemic, more than 25% of the world’s population has been forced into lockdown for weeks and even months at a time. Because of this, online streaming services have been heavily utilised.
Netflix subscriptions boomed during the pandemic, as families looked for entertainment to distract them from the difficulties of life in a pandemic. Netflix wasn’t the only big winner – other streaming services also enjoyed a boost in profits, with most registering a 10% uplift in new subscriptions during the various lockdowns.
Live streaming on other platforms is also a growth industry. Consumers are increasingly consuming video content on all major platforms, including social media sites like Instagram and YouTube. Live streaming enhances viewer experiences of sporting events they can’t view in real life, as well as gaming content streamed on sites like Twitch.
Video On-Demand is the Future
Experts believe video on-demand will become a mainstream option across all platforms in years to come. It is popular across all age groups, which is why companies like Netflix are investing massive sums in content production.
The WFH Business Model
Not only have families taken full advantage of online entertainment services like Netflix, but many people have switched to a work-from-home business model. Working from home means communicating online, via video chat applications and webcams. Superfast broadband in towns and cities makes online video streaming a viable long-term solution, so online video conferencing will likely become the norm over the next decade.
Technological Advancements Are Assisting the Growth of Live Streaming
Technology has played a big part in the growth of the live streaming industry. Artificial intelligence has improved the quality of online video content, alongside the implementation of blockchain technology. In addition, video streaming solutions are increasingly cloud-based, so users can subscribe and pay a monthly fee instead of downloading cumbersome software.
Another key factor identified by analysts is the increasing digitalisation. More than 55 million people in the UK own a smartphone, and worldwide, smartphone ownership is estimated to be around 3.8 billion. With 5G being rolled out imminently, it will soon be incredibly easy to watch HD video content on the move, from anywhere.
Online video streaming is the future, and we can expect to see steady growth well beyond 2030.