3 Trends Driving Video-On-Demand In 2016

by Rajiv Vaidya, CEO Spuul India    Dec 18, 2015


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 around 65 percent of all IP traffic in India by 2018. Nearly 70 billion minutes of video content will be viewed across India per month. Listed below 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 the viewers waking up to fresher and diverse content, most 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. Platforms such as Spuul, for example, showcase a lot of great independent movies and other video content, which typically do not get massive theatrical releases as a result of lower budgets.

3.    Increasing consumption of mobile devices - According to the Deloitte report, smartphone devices across the globe grew at a CAGR of 17% as compared to 9.5% growth in all mobile devices. The smartphones crossed 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. Infact, Spuul has seen that VOD platforms in India see mobile consumption in excess of 70 per cent. 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 CEO, Spuul India)