Nigeria Video on Demand segment projected at $836.1m in 2023
By Oghale Mafuru
Amid declining attention span which currently sits at 9 seconds, the Video on the Demand platform offers a marketing and advertising opportunity for brand managers in Nigeria as latest industry report has revealed that the segment which has witnessed an impressive growth over the last two years, due to increase in video consumption is projected to rise further by $836.10m this year.
Furthermore the sector is expected to grow annually at a Calculated Annual Growth Rate (CAGR) of 11.64 percent between 2023 and 2027, resulting in a projected market volume of $1,299.00m by 2027.
According to Statista, a research agency in Germany, while user penetration will be 21.8 percent in 2023 and expected to hit 26.7 percent by 2027, the largest segment which is Video Streaming (SVoD) is projected to grow at a market volume of US$775.20m in 2023.
Globally, revenue in the Video-on-Demand segment is projected to reach US$111.10bn in 2023 with revenue expected to grow at an annual growth rate (CAGR 2023-2027) of 8.77 percent, resulting in a projected market volume of US$155.50bn by 2027.
The largest segment is Video Streaming (SVoD) with a market volume of US$95.35bn in 2023.
In global comparison, most revenue will be generated in the United States (US$43,390.00m in 2023) as the number of users is expected to amount to 1,924.4m users by 2027.
User penetration will be 21.0 percent in 2023 and is expected to hit 24.2 percent by 2027.
Netflix, a video on demand platform, ended the year 2022 with around 231 million global paid subscribers. The company reported that its revenue in Q4 reached $7.85 billion, reflecting 1.9 percent growth year over year, compared to 16 percent year over year revenue growth it recorded the previous year.
In Q4 Netflix added 909,000 paid subscribers domestically in U.S. and Canada while in Europe, Middle East and Africa (EMEA) it added 3.19 million net subscribers. Latin America contributed 1.76 million and Asia-Pacific (APAC) brought in 1.79 million paid users.
Meanwhile, another Video on demand platform, Amazon Prime Video revenue reached $5.16 billion in 2022, up from $4.63 billion in 2021. With over 200 million subscribers, the Amazon Prime subscribers are expected to reach 250 million by 2027.
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