How Video-on-Demand Has Grown in the Past Few Years - eMarketer

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How Video-on-Demand Has Grown in the Past Few Years

Over-the-top video services are nearing saturation

February 16, 2016

This year, 186.9 million people in the US will watch video through an app or website like Hulu or YouTube, eMarketer forecasts. And overall, video-on-demand (VOD) usage among US cable subscribers has grown, per research.

Video-on-Demand (VOD) Usage Among US Cable Subscribers, 2010 & 2015 (% of respondents)

Leichtman Research Group Inc. (LRG) surveyed 1,214 US adults who live in a household with a TV set. In 2010, 34% of US cable subscribers used VOD—from a cable or telco provider—over the course of a month. In 2015, VOD usage grew. Indeed, 51% of cable subscribers used it over the course of a month.

This increase in VOD usage is likely because TV viewers prefer to watch timeshifted shows on demand. A December 2015 survey from Hub Research found that nearly a third of US TV viewers prefer watching on demand—such as episodes of current TV shows after they air live on their regular day and time.

Preferred Method of Watching Time-Shifted* TV Among US TV Viewers, Dec 2015 (% of respondents)

On the whole, over-the-top (OTT) video services are nearing saturation. By 2019, eMarketer estimates that 72.1% of US internet users will use OTT video services. Even though such high penetration suggests saturation, there is still significant room for growth for many players in the market.

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