Video on demand (VOD) is one of the most important businesses in this digital era. How not, the VOD industry has the potential to reap revenues of up to US$ 85,759 million in 2021.
This is inseparable from the COVID-19 pandemic which has made video on demand (VoD) services much sought after by the public. The reason is that the VOD platform is able to become an alternative to content other than what is broadcast on television.
In addition to the varied content, the displayed image may be clearer than the average television. No doubt, many VOD companies are often encountered, starting from Netflix, VIU, and other VOD companies. How good is the potential of this VOD business?
A data presented by Statista regarding the potential of this VOD business shows an increase in revenue from 2017. In 2017, the revenue from the VOD industry was US$ 37,509 million. This figure increased the following year to US$ 45,769 million.
This figure continues to skyrocket until 2021 which is projected to continue to increase to reach US$ 85,759. Of course this number is very large and makes VOD a potential business.
The largest segment for the VOD industry is Video Streaming (SVoD) with a market volume of US$ 70,845 million in 2021. Statista also noted that the average revenue per user (ARPU) from the VOD segment is projected at US$ 47.60 million in 2021.
Statista also discovers the huge potential of the VOD industry until 2025. In terms of the number of users, VOD is expected to have 2,226.1 million people by 2025. User penetration is also expected to reach 28.5% by 2025.
There is no need to ask about income, because it is estimated that income from the VOD industry shows an annual growth rate (CAGR 2021-2025) of 10.43%. Thus, the VOD industry is projected to generate a market volume of US$ 127,512 million in 2025. Promising isn't it?
Therefore, the VOD business can indeed be regarded as one of the potential cuan businesses that can be taken into consideration. However, to run this business, it is necessary to prepare a compatible system to deliver the content created.
For this reason, a VOD company needs a cloud system that can deliver content to end users precisely and quickly. Responding to this, Huawei Cloud provides Content Delivery Network (CDN) services that can help businesses deliver well-optimized video content.
Huawei Cloud CDN is capable of being applied to several scenarios ranging from speeding up website loading, downloading speed, to VOD loading speed. Like VOD, this system is capable of playing videos in 1 second and lowers frame freezing from 1.2%. CDN can monitor in real time traffic and bandwidth so that the services provided remain excellent.
CDN provides security controls from referrer validation, URL authentication, ACLs to protecting copyrights and preventing unauthorized playback. CDN also allows files to be compressed to save bandwidth usage.
