As per MRFR analysis, the US Video on Demand Market Size was estimated at 20.97 (USD Billion) in 2023. The US Video on Demand Market Industry is expected to grow from 24.79(USD Billion) in 2024 to 62.01 (USD Billion) by 2035. The US Video on Demand Market CAGR (growth rate) is expected to be around 8.692% during the forecast period (2025 - 2035).
The US Video on Demand Market is witnessing significant trends that are reshaping the way content is consumed. One key market driver is the growing demand for convenience and flexibility in viewing habits. Consumers increasingly prefer to watch content on their own schedule instead of adhering to traditional broadcasting times. This shift has been amplified by the rise of smart devices and high-speed internet access across the country, making it easier for households to access a diverse range of content anytime and anywhere. Furthermore, there is an ongoing trend of original content production by streaming platforms, which aims to attract and retain subscribers by offering unique viewing experiences unavailable on conventional networks.
In recent times, the integration of artificial intelligence and machine learning in content recommendation systems has enhanced user engagement and satisfaction, allowing for personalized viewing experiences. People are not just watching video on demand; they are actively curating their entertainment options based on their preferences, which leads to a more tailored experience. Additionally, as broadband penetration continues to grow, especially in underserved areas, there are new opportunities for video on demand services to expand their reach and tailor offerings to local markets. Moreover, the competition among platforms has intensified, with players continuously innovating their pricing models and subscription services.
Some platforms are now offering ad-supported tiers, making premium content more accessible to a broader audience. This is reshaping consumer choices and encouraging businesses to explore hybrid monetization strategies. Overall, while the US Video on Demand Market is evolving rapidly, it is clear that technological advancements, consumer preferences, and competitive dynamics will continue to drive significant changes in the industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The growth of the US Video on Demand Market Industry is significantly driven by the increasing adoption of high-speed internet across the country. According to the Federal Communications Commission, approximately 90% of Americans now have access to broadband services, which has been a crucial factor for the proliferation of streaming services. Additionally, the US has seen a steady increase in average internet speeds, with a 30% increase reported from 2020 to 2023. This enhanced digital infrastructure enables consumers to stream video content seamlessly, thus catalyzing subscription-based services like Netflix and Hulu, which are prominent players in the US Video on Demand Market Industry. With consumers favoring on-demand options that offer more flexibility and a greater variety of content, this driver will continue to bolster market growth.
The US Video on Demand Market Industry is further propelled by the rising demand for original content among viewers. Streaming platforms are increasingly investing in creating exclusive series and films to attract and retain subscribers. According to estimates, organizations like Amazon Prime Video and Disney+ dramatically increased their content budgets by over 50% in the last two years to meet consumer expectations for high-quality original content.In the US alone, original programming has become a primary draw, with original content accounting for approximately 40% of total streaming time as reported in industry surveys. This trend is likely to continue influencing more consumers to switch from traditional cable television to on-demand services, thus fostering market expansion.
The COVID-19 pandemic has led to significant shifts in consumer behavior, which have a lasting impact on the US Video on Demand Market Industry. During lockdowns, many consumers turned to video streaming services for entertainment, resulting in a surge in subscriptions. Data from the Motion Picture Association indicates that viewership in US households increased by 25% compared to pre-pandemic levels. This unexpected shift has prompted traditional media companies to adapt their strategies, with many investing heavily in streaming platforms. With consumers now conditioned to seek out convenient and varied viewing experiences, the market is expected to sustain this growth trajectory as habits formed during the pandemic seem to have solidified, leading to a more pronounced and ongoing preference for video on demand.
The US Video on Demand Market is experiencing notable growth, significantly driven by the diverse Revenue Model that encompasses different approaches to content monetization. Among these models, Subscription Video on Demand (SVoD) has emerged as a leading player, appealing to consumers with its straightforward pricing and unlimited access to a vast library of content. This model is particularly popular due to the rise of binge-watching culture, where consumers favor the convenience of accessing multiple titles at their own pace without additional charges.
In contrast, Transactional Video on Demand (TVoD) allows consumers to pay for specific content on a per-view basis, which caters to those who prefer not to commit to a subscription but still wish to enjoy high-quality, on-demand content. This model has found particular relevance in niche markets, satisfying the demand for recent releases and exclusive content that may not be available on subscription platforms. On the other hand, Advertisement-Based Video on Demand (AVoD) has carved out its own space by providing content free of charge, which is supported by advertisements.
This model attracts a broad audience, particularly cost-sensitive viewers, and has gained traction as advertisers look for effective channels to reach target demographics. The flexibility of the Revenue Model in the US Video on Demand Market allows for a broader audience reach, catering to varying consumer preferences and spending habits. Consumers are increasingly drawn to platforms utilizing these models, which leverage user data and viewing trends to offer tailored experiences, ultimately enhancing viewer engagement. Yet, this market also faces challenges regarding content availability and competition among service providers, which drives innovation and strategic partnerships within the industry. Overall, the Revenue Model segment plays a crucial role in shaping the landscape of the US Video on Demand Market, reflecting ongoing trends in consumer behavior and technological advancements.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Video on Demand Market exhibits a diverse Content Type segmentation that plays a critical role in shaping viewer preferences and consumption patterns. Sports content has gained a prominent position, driven by the increasing viewership of live events and the growing popularity of sports streaming platforms. Music content also holds significant importance as platforms are continuously evolving to meet consumer demand for music videos, live performances, and curated playlists. TV Entertainment remains a dominant force within the market, characterized by original programming and exclusive series that engage audiences across various demographics.
Kids' programming has witnessed substantial growth as streaming services provide safe and tailored content for younger viewers. Movies continue to attract a large audience with a mix of classic films and new releases, enhancing the competition among providers to deliver high-quality cinematic experiences. The "Others" category encompasses a variety of niche content aimed at diverse audience segments, which fosters a more personalized viewing experience. Together, these classifications highlight the richness of the US Video on Demand Market, reinforcing its significance in the entertainment landscape and reflecting changing consumer behaviors. As the market evolves, the continuous innovation and adaptation within these content types are expected to drive further growth and engagement.
The US Video on Demand Market has grown rapidly over the past several years, driven by advancements in technology, changes in consumer behavior, and the increasing availability of high-speed internet. This sector includes streaming services that allow viewers to access a wide array of content on their own terms, fostering a highly competitive landscape among various providers. Companies operating in this market are continually innovating and adapting their offerings to capture consumer interest and loyalty, as on-demand consumption becomes the norm. The competitive insights reveal key players striving to differentiate themselves through unique content libraries, user experience enhancements, and pricing strategies, creating an ecosystem where innovation fuels growth and competition is intense.
Focusing on Apple within the US Video on Demand Market, the company has established a robust presence with its Apple TV+ service, which has garnered significant attention for its high-quality original content and exclusive programming. Apple's strengths in this market stem from its vast ecosystem, including the seamless integration of hardware and software, which enhances the overall user experience for customers who are already part of the Apple universe. The company leverages its established customer base and brand loyalty to entice subscribers, while also investing heavily in original content creation to enhance the appeal of its offering. Apple's strategic focus on quality over quantity allows it to attract a discerning audience that values premium entertainment options, further solidifying its position in the competitive landscape.
Starz has carved out its niche in the US Video on Demand Market by offering a diverse range of original programming, including popular series and films that cater to varying audience tastes. The company is known for its dramatic storytelling and has developed key products and services that resonate with subscribers seeking high-quality entertainment. Starz's presence in the market is bolstered by its strategic partnerships and distribution agreements, which expand its accessibility across multiple platforms. Additionally, the company has made significant strides through mergers and acquisitions, which have enabled it to acquire valuable content libraries and strengthen its market position. Starz's focus on delivering a unique and compelling content lineup positions it as a strong competitor in the landscape of on-demand video services, appealing particularly to niche audiences craving distinctive programming that sets apart its offerings.
The US Video on Demand Market has seen significant developments in recent months, with major players expanding their services and offerings. In September 2023, Warner Bros Discovery announced a new content partnership with Hulu, aiming to boost their streaming library, which reflects ongoing competition in the market. In the same month, Netflix acquired a gaming studio to enhance its interactive content strategy. Disney's subscription service has experienced fluctuations, prompting them to reassess their content strategy in light of changing consumer preferences. In terms of mergers and acquisitions, Amazon completed its acquisition of MGM in March 2022, bolstering its content library and making it a more formidable player against competitors like Paramount and Apple TV+. Additionally, in May 2023, Sony launched its enhanced streaming capabilities for PlayStation users, indicating an ongoing convergence of gaming and streaming platforms. The US Video on Demand Market continues to grow, spurred by the increasing demand for diverse content and competition between traditional media and emerging platforms, reflecting a dynamic landscape where streaming services must continuously innovate to attract and retain subscribers.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 20.97(USD Billion) |
| MARKET SIZE 2024 | 24.79(USD Billion) |
| MARKET SIZE 2035 | 62.01(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 8.692% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Apple, Starz, Fandango, Vudu, Sony, Disney, Warner Bros Discovery, NBCUniversal, Hulu, Paramount, Netflix, Google, Tubi, Amazon, Pluto TV |
| SEGMENTS COVERED | Revenue Model, Content Type |
| KEY MARKET OPPORTUNITIES | Expanding subscription models, Surging mobile viewership, Original content production, Integration with smart TVs, Strategic partnerships with telecoms |
| KEY MARKET DYNAMICS | increased internet penetration, original content production, subscription-based pricing models, competitive landscape expansion, user experience optimization |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Video on Demand Market is expected to be valued at 24.79 USD Billion by 2024.
By 2035, the US Video on Demand Market is projected to reach a value of 62.01 USD Billion.
The anticipated CAGR for the US Video on Demand Market from 2025 to 2035 is 8.692%.
The revenue for Subscription Video on Demand (SVoD) is projected to be 12.0 USD Billion in 2024 and 30.5 USD Billion in 2035.
The market size for Transactional Video On Demand (TVoD) is expected to be 8.0 USD Billion in 2024 and 20.0 USD Billion in 2035.
Advertisement Based Video On Demand (AVoD) is expected to generate revenue of 4.79 USD Billion in 2024 and 11.51 USD Billion in 2035.
Major players in the US Video on Demand Market include Apple, Amazon, Netflix, Disney, and Hulu among others.
The US Video on Demand Market offers opportunities for growth through advancements in technology and increasing consumer demand for streaming services.
Challenges in the US Video on Demand Market include intense competition and content licensing issues.
The competitive landscape in the US Video on Demand Market is characterized by significant market share held by both established players and new entrants.
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