Traditionally there are two approaches of watching TV programs – Over-the-air broadcasts and cable TV. Internet Protocol Television (IPTV) and Internet TV started gaining prominence with advancements in internet technology. While the traditional approaches rely on signals from satellite for displaying contents, but IPTV and Internet TV uses internet for transmitting programs in the form of data. IPTV delivers programs through dedicated and private Internet Protocol (IP) networks and can stream any media continuously. IPTV often requires equipment including set-top boxes and provides content-on-demand and live channels. Unlike IPTV, Internet TV uses general internet and could be accessed from TVs, PCs, and smartphones easily. Also, Internet TV provides its own contents apart from content-on-demand and live channels from other service providers. For instance, Netflix provides many TV series that are produced by Netflix in-house. Global Internet TV market report considers the revenue generated from internet TV alone and does not take into consideration the revenue generated from IPTV, cable TV, and over-the-air broadcasts.
Global Internet TV market is expected to cross $170 billion by the end of 2025 with increasing demand for video-on-demand (VOD) as major driver. The flexibility associated with VOD has increased the number of viewers using this channel which has helped to increase the demand for internet TV.
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One of the major challenges associated with global internet TV market is the lack of an integrated platform for providing contents. More number of production houses have entered the internet TV market and for generating more revenue many of the production houses are planning to limit the contents to their own internet TV services. This trend reduces the content in all internet TV services and viewers will have to pay for more than a single internet TV service for getting a wide coverage, which can amount to a huge amount especially for middle class families in developing economies. Also, weak internet infrastructure and unreliable internet connection leads to frequent disconnections which affects the internet TV market. This challenge is more relevant during live streaming since video cannot be buffered for compensating the internet disconnection period.
Based on the geography, the market is split into North America, Middle East and North Africa, Europe, APAC, and RoW. RoW includes Latin America and Southern part of Africa. Americas is the leading revenue generator in the global internet TV market with a major share of the market contributed by the US. APAC is one of the fastest growing market in the global internet TV market with major growth being witnessed in China, South Korea, Japan, Australia, and India.
Based on the type of content, the global internet TV market is segmented into content-on-demand and live streaming. The demand for VOD, which is a part of content-on-demand is very high over the past few years and is one of the key factors fueling the global internet TV market. News and sports related contents are the major drivers of the live streaming segment.
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Based on revenue source, the global internet TV market is segmented into subscription-based, advertisement-based, and transaction-based video. In a subscription-based revenue model the user enters into a subscription agreement, which provides access to the internet TV services. Users can use the service till the subscription lasts after which it requires a renewal. In advertisement-based model users can freely view the contents in the internet TV but will be viewing advertisement regularly after every interval of time. Transaction-based service will provide users options to buy the content they need from a group. In most of the cases the signup is free, and users can go through the internet TV providers content collection and then purchase them as per there requirement. Subscription-based and advertisement-based revenue sources generated a major share of the market.
Global internet TV market is primarily dominated by major companies including AT&T, The Walt Disney Company, Sony, Alphabet, Dish Network, CBS Corporation, Amazon, Netflix, Alibaba Group, and Baidu. Other prominent players in the market include Lions Gate Entertainment, Tencent, PCCW Media Group, Viacom 18, Reliance Entertainment, Iflix, Icflix, Philo, FuboTV, and Eros Entertainment.
According to Infoholic Research, the global internet TV market will grow at a CAGR of over 11% during the forecast period 2019–2025. The aim of global internet TV market report is to define, analyze, and forecast the global internet TV market based on segments, which include revenue source, type of contents, and region. In addition, the global internet TV market report helps venture capitalists in understanding the companies better and make well-informed decisions and is primarily designed to provide the company’s executives with strategically substantial competitor information, data analysis, and insights about the market, development, and implementation of an effective marketing plan.
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