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Video on Demand in Hospitality Industry Refers to a System That Allows Guests to Select and View Video Content of Their Choice
VOD in hospitality industry refers to a system that allows guests to select and view video content of their choice, also to enrich the entertainment options available for guests, through various devices such as smart TV, tablet, mobile, laptops, and desktops. MarketsandMarkets forecast the VOD in hospitality market size to grow from USD 6.89 Billion in 2016 to USD 19.11 Billion by 2021, at a CAGR of 22.6%. As the frequency of streaming and downloading TV shows, films, documentaries and series of HD videos, are increasing day-by-day in the hospitality industry, the need for video on demand is also growing rapidly.
The key players in the VOD in hospitality market include Alcatel Lucent (France), AT&T (U.S.), Ericsson (Sweden), Netflix (U.S.), and others. These players have adopted various strategies such as partnerships, acquisitions, and new product launch and upgradation to achieve growth in the video on demand market.
The VOD in hospitality market witnesses lot of partnerships, new product launches, and acquisitions by top players from 2013 to 2016. Alcatel-Lucent partnered with China Telecom to expand its 4G LTE services across 12 Chinese provinces. AT&T partnered with Hyatt hotels, for allowing hotel guests to view DIRECTV shows, movies, and more in nearly 75,000 hotel rooms in the U.S. Netflix and Marriott Hotels formed a partnership to provide a smooth flow of guest room entertainment experience.
The key players also adopted the strategy for acquisitions to increase their geographic presence and expand their product portfolio to untapped markets. Ericsson acquired FYI Television, a premier entertainment metadata and rich media content supplier. This acquisition would help Ericsson strengthen its industry-leading position in broadcast and media services; Cisco acquired 1 Mainstream, a private company, to help its media and service provider customers provide video content on internet through multiple devices, such as TV, tablets, and mobiles.
The major players also launched new products and offering, to strengthen their product portfolio and to expand their offerings to newer clients. Alcatel-Lucent transformed Telefonicas fixed and mobile networks with its IP technology and services. This update would allow users to meet the growing consumption of data and video by its customers while at the same time optimize operational cost and efficiency; Ericsson launched NuVu subscription, a VOD service, in Africa, to help subscribers to access around 3,000 local and international TV and film titles for a small monthly fee.
The VOD vendors’ worldwide are continuously adding innovation to their products and services to enhance the smooth flow of videos and reduces interruption in network. Moreover, VOD solutions are being increasingly adopted in various verticals, such as government, media and entertainment, IT and telecom, education, and healthcare, which have led to the growth of the market across the globe.
Video on Demand in Hospitality Market by Solution (Pay TV, IPTV, and OTT), by Service, by Delivery Model, by User type, by Revenue Model, and by Region - Global Forecast to 2021
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