Video streaming industry sees lower VOD consumption per service in 2021

The study from the streaming video business intelligence and predictive analytics provider examined the state of the video streaming industry on a global scale, diving deep into 2021 data and comparing it with 2020’s findings. Data was gathered via the NPAW Suite from 1 January to 31 December 2021, then compared with 2020 data. Key metrics aim to show general trends in content type consumption and how regions and devices have fared around the world.

Among the key findings was that the global streaming industry experienced further expansion in 2021 as consumers consolidated some of the new behaviour patterns that emerged with the pandemic. Yet it also noted that competition is becoming fiercer, with established providers and newcomers alike bidding for the viewers’ attention and experimenting with new monetisation models.

VOD consumption for each streaming provider surveyed went down by an average of 9% across regions. Rather than this downward trend reflecting a loss of appetite for VOD content among consumers, NPAW said that it showed the effects of increasingly fierce industry competition and an abundance of content. While consumption per service increased globally it varied from one region to another. This mixed picture was said the survey a reflection of the local nature of linear TV and how its consumption depends much more on local preferences and trends than VOD does.

Providers continued optimising video quality for VOD, increasing Join Time by a global average of 5% to support higher bitrates while lowering the buffer ratio. However, NPAW observed that they seem to have gotten the hang of linear TV, as tweaks in the various quality metrics for this type of content stabilised.

With live sporting events back at full speed, sports streaming was booming for VOD and linear TV, both from a consumption and video quality standpoint. NPAW expects sports streaming consumption and quality to continue rising in 2022 as providers put a greater focus on this type of content.

Another key trend was that big screens still reign supreme, while smartphones show the biggest decrease in consumption of all devices. Streaming was competing with many other forms of entertainment on mobile phones but also by the fact that consumers are spending more time at home and have less of a need to stream video on the go.

“In today’s hyper-competitive market landscape, it is critical for providers to prioritise quality of experience and quality of service if they want to stay ahead of the game,” said Ferran G. Vilaró, CEO and co-founder of NPAW commenting on the NPAW Video Streaming Industry Report 2021. “Access to real-time data and video analytics insights is the key to creating better user journeys, increasing viewer loyalty, and reducing churn.” Rapid TV News