The rising demand for live video content and the growing number of people using smartphones to watch TV shows, and of course movies have made video streaming technology very popular over the years. The number of people using on-demand streaming services is expected to hit 1.2bn this year, according to data gathered by LearnBonds. The rising trend is set to continue in the future, with the number of users reaching 1.3bn by 2024.
On-demand streaming services refer to videos provided from platforms like Amazon Prime Video or Netflix, which offer unlimited access to their content libraries for a monthly subscription fee. In 2017, there were more than 970 million people in the world watching this type of content, while in the next two years, the number of users jumped to 1.1bn globally. The upward trend continued in the last twelve months, with the number of people watching on-demand streaming videos growing by 5.4% year-on-year. A Statista survey revealed user penetration was 15.2% in 2020, expected to hit 16.9% by 2024.
Analyzed by geography, the United States represents the largest video streaming market in the world. The US on-demand video streaming industry is forecast to generate $11.9bn in revenue this year, with a remarkable 36% user penetration. Recent Statista surveys showed more than 29% of Americans watch streaming movies several times per week, while 17% of respondents confirmed doing so every day. Another 23% of US citizens frequently uses video streaming technology to watch sporting events.
Netflix began providing streaming content a year after. Initially created for DVD rentals and sales, this streaming giant hit over 167 million paying subscribers worldwide in 2019, and more than 4.6 million free trial customers. Nearly 60% of the subscribers, or more than 61 million, were from the United States. The 2019 data also revealed that Netflix was the best performing stock of the decade, returning a remarkable 3,726.2% in 10 years. In 2008, NBC and Fox launched their streaming platform Hulu, and CBS followed their example a year later.