Video On-Demand (VOD) is experiencing exponential growth. Large companies such as Disney and Amazon have seized the opportunity in providing streaming services due to high demand for VOD contents. Unsurprisingly, with great supplies and demands, the market will keep on growing rapidly for years to come. In 2020, the video streaming market was worth $70.5 billion. As of 2021, the CAGR growth for the VOD market is 19.5%. It is estimated that the VOD market value will reach $159.62 billion by the end of 2027.

Driving Factors for VOD Growth 

What drives the VOD market’s rapid growth? According to Fortune Business Insights, there are at least three elements that nurture the growth of the VOD market. One obvious catalyst is the integration of streaming apps with smart TV, which opens up opportunities for more users to access on-demand contents. The increasing use of smartphone data consumption also facilitate the growth of VOD, as content viewing experience is no longer dominated by TV. In addition, the development of artificial intelligence is co-opted by VOD players.

In Indonesia, internet usage and content consumption patterns also provide many opportunities for VOD to grow. Last year (2020), 175 million Indonesians (92% of whom are active social media users) were connected to the internet. Internet access also has become more affordable, as it reaches approximately IDR 199,000 ($13.96) per 20 Mbps in 2021. With the forthcoming arrival of 5G, video contents are getting more and more accessible. All these factors nurture the growth of VOD in Indonesia, where VOD users will reach 55.8 million in 2025.

On-Demand Contents Benefit ISPs

Do on-demand contents benefit ISPs? Certainly. Experts from Microsoft Research and Polytechnic University, New York have anticipated the profitability of on-demand contents for ISPs since 2007. Fast forward 14 years later, the practice has become common. On-demand contents have become an important element for ISP services in providing premium services for their clients, which may range from individuals to other businesses. Simply put, ISP value increases if they incorporate a variety of on-demand contents in their services.

On-demand contents can benefit ISPs who cater for other businesses in a B2B model. Hospitality services, for instance, are required to entertain their guests by giving the best services available. ISPs can seize the opportunity by offering a better product which includes premium on-demand contents. Hotel managers, for example, can keep a steady supply of entertainment by giving a range of content options for their guests. Integrating OTT contents with their smart TVs can enhance in-room entertainment experience.

VOD subscribers will also opt service providers whose services include their favorite contents. ISPs can find out more about their customers’ watching preferences. Afterwards, incorporating the best selections of on-demand content can elevate the ISP’s brand value to the customer. If a customer cannot access their favorite content through their subscription, the customer is likely to find another provider that can cater their needs. Therefore, it is important for ISPs to work with a reliable provider which is capable of giving a range of on-demand contents.

Time to Seize the Opportunity

ISPs can take advantage of the nationwide VOD market growth by giving more consideration to the utilization of on-demand contents. ISPs can only stay relevant in the competition with the provision of on-demand content to their customers. To do this, it is important to work with a service provider with a capable tool. Telkom Indonesia’s Wholesale TV Box is the perfect tool for ISPs who wish to add on-demand content in their services. With Wholesale TV Box, ISP users can enjoy a range of VOD contents with reliable connection and services.