Transactional Video on Demand Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Electronic Sell Through, Download to Rent), By Vertical (Media & Entertainment, Education, Others (Sports, etc.)), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 8.03 Billion
CAGR (2026-2031)	14.11%
Fastest Growing Segment	Media & Entertainment
Largest Market	North America
Market Size (2031)	USD 17.73 Billion

Market Overview

The Global Transactional Video on Demand Market will grow from USD 8.03 Billion in 2025 to USD 17.73 Billion by 2031 at a 14.11% CAGR. Transactional Video on Demand (TVOD) functions as a digital distribution model where consumers purchase or rent individual video assets on a pay-per-view basis rather than through a recurring subscription. The primary drivers supporting this market include the global proliferation of high-speed broadband and the increasing consumer demand for immediate access to premium theatrical releases and specific niche content without bundling. According to the British Association for Screen Entertainment, in 2024, the total value of the digital transactional market in the United Kingdom was £381 million, highlighting the sector's resilience.

Despite this stability, the market expansion faces a significant challenge from the dominance of Subscription Video on Demand (SVOD) platforms. The perceived value proposition of unlimited content libraries available for a fixed monthly fee often makes the cumulative cost of single-transaction purchases appear prohibitive to price-sensitive audiences, thereby hindering the broader adoption of the transactional model in a saturated entertainment landscape.

Key Market Drivers

The strategic shortening of theatrical windows and the widespread adoption of Direct-to-Digital release strategies serve as primary catalysts for the market, effectively bridging the gap between cinema and home entertainment. By offering Premium Video on Demand (PVOD) options, studios capitalize on the immediate marketing buzz of theatrical releases, enticing consumers to pay a premium for early access before titles migrate to subscription services. This model preserves the high value of individual transactions, ensuring that digital purchase and rental platforms remain essential for viewers prioritizing immediacy over delayed streaming availability. According to the British Association for Screen Entertainment, January 2025, in the '2024 Market Data' report, the total number of films released to buy or rent at a premium price point increased by 15 percent in 2024, with the average window from theatrical premiere to home release consolidating to just 40 days.

Simultaneously, the sector is bolstered by a growing consumer preference for flexible, contract-free a la carte content models, which offer a financial alternative to the compounding costs of multiple subscriptions. As fragmentation in the streaming landscape increases, audiences are demonstrating a willingness to pay for specific, high-quality titles on a per-view basis rather than maintaining continuous access to vast, often un-watched libraries. This behavior is particularly evident in the resilience of digital rental numbers for fresh content. According to the Digital Entertainment Group, November 2024, in the 'Q3 2024 Digital Media Entertainment Report', consumer spending on internet-delivered digital rentals of new theatrical releases grew 7.7 percent during the third quarter, underscoring the durability of the single-transaction format. Reinforcing the scale of this demand, according to Universal Pictures, in 2025, the digital release of the film Wicked generated over $70 million in sales across the United States and Canada in its first week alone.

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Key Market Challenges

The primary impediment to the expansion of the Global Transactional Video on Demand market is the competitive pressure exerted by the dominance of Subscription Video on Demand (SVOD) platforms. The economic efficiency of SVOD models, which offer unlimited access to extensive content libraries for a fixed monthly fee, creates a difficult value proposition for the transactional sector. For price-sensitive consumers, the cumulative cost of renting or purchasing individual titles often appears prohibitive when compared to the flat-rate structure of subscriptions. This financial disparity discourages frequent usage of transactional services, relegating them to a secondary option utilized only for specific theatrical releases not yet available on subscription tiers.

This shifting consumer preference is measurably impacting the sector's financial performance in key regions. According to the Digital Entertainment Group, in 2024, total consumer spending on digital transactional formats in the United States declined by 7 percent, while the subscription streaming segment grew by over 25 percent during the same period. This divergence in spending highlights how the consolidation of viewership within subscription ecosystems is directly reducing the addressable market for single-transaction purchases, thereby stalling the broader growth of the transactional model.

Key Market Trends

The surge in Electronic Sell-Through (EST) for film franchises and box sets functions as a critical market stabilizer, catering to collectors prioritizing permanent access over temporary streaming. While rental demands fluctuate with theatrical schedules, the "buy-to-keep" model is gaining traction among consumers seeking to own complete seasons of television series and franchise collections without subscription dependency. This behavior protects the sector from SVOD cannibalization by targeting high-affinity fandoms willing to pay premiums for library permanence. According to the Digital Entertainment Group, February 2025, in the 'Year-End 2024 Digital Media Entertainment Report', while the broader transactional market faced headwinds, consumer spending on the digital purchase of TV titles specifically increased by 3 percent in the fourth quarter of 2024.

Simultaneously, the migration of live sports and exclusive events to digital Pay-Per-View (PPV) is expanding the addressable market beyond traditional movie content. Digital platforms are increasingly integrating transactional gateways for marquee combat sports and football matches, allowing rights holders to monetize high-demand events directly to global audiences outside of linear television contracts. This approach leverages the flexibility of digital distribution to capture impulse purchases from fans who decline full season passes. According to SportsPro, October 2025, in the article 'DAZN narrows losses to US$936m in 2024', the specialized streaming service reported that its annual revenue grew 11 percent to $3.19 billion, a performance primarily driven by the strategic expansion of its digital pay-per-view operations.

Segmental Insights

According to authoritative market analysis, the Media & Entertainment sector is the fastest-growing segment in the Global Transactional Video on Demand Market. This expansion is largely driven by production studios adopting premium digital release strategies, which significantly shorten the duration between theatrical premieres and home availability. Furthermore, consumers increasingly prioritize the flexibility of the transactional model, allowing them to purchase or rent specific blockbuster titles without the financial commitment of recurring subscriptions. This ability to access exclusive, high-demand content on an individual basis creates a sustainable growth trajectory for the segment.

Regional Insights

North America maintains a dominant position in the global Transactional Video on Demand market due to a highly developed digital infrastructure and widespread broadband connectivity. The region benefits from the established presence of major media technology corporations that drive platform adoption and content distribution. Additionally, policies monitored by the Federal Communications Commission regarding internet access facilitate consistent streaming quality, encouraging consumer reliance on digital rentals and purchases. High disposable income levels and a strong cultural preference for immediate access to premium entertainment releases further support the sustained expansion of the regional market sector.

Recent Developments

• In January 2025, Universal Pictures Home Entertainment announced that the film "Wicked" generated more than $70 million in digital sales across the United States and Canada within its first week of release on premium video-on-demand (PVOD) platforms. This financial performance established a new record for the studio's premium digital releases, surpassing benchmarks set by previous blockbuster titles. The movie was made available for rental and purchase on major transactional services, such as Amazon Prime Video and Fandango at Home, shortly after its theatrical run. Studio leadership highlighted these results as strong validation of their strategy to offer early home access to premium content.
• In October 2024, Rakuten TV launched a new business-to-business division titled Rakuten TV Enterprise Services to support content owners in the digital landscape. Unveiled at the MIPCOM content market, this initiative enables distributors to build and launch their own white-label video apps and streaming channels using Rakuten's established technology infrastructure. The solution supports multiple monetization models, specifically including transactional video on demand (TVOD) and advertising-based models. The CEO of Rakuten TV noted that this expansion allows partners to leverage the company's technical expertise to maximize revenue and broaden their reach across major consumer electronics devices.
• In March 2024, Fandango Media officially rebranded its digital video-on-demand service, Vudu, to "Fandango at Home," unifying its theatrical ticketing and home entertainment businesses. The service continues to operate as a key player in the transactional market, allowing users to rent or buy movies and television shows without a subscription. Executives at the company stated that the rebrand was designed to create a seamless ecosystem for fans, bridging the gap between cinema visits and home viewing. The platform retained all existing user libraries and accounts, ensuring continuity for its extensive customer base while adopting the parent company's identity.
• In January 2024, Google LLC completed the discontinuation of its dedicated Google Play Movies & TV application on Android TV devices and the web, fundamentally shifting its presence in the transactional video market. This transition marked the final phase of a strategy to consolidate the company's digital video services into the Google TV platform and YouTube. Consumers were directed to access their existing libraries and rent or purchase new content through the "Shop" tab on Google TV or the Movies & TV section within YouTube. The move aimed to streamline the user experience by centralizing video content consumption into fewer, more integrated interfaces.

Key Market Players

• Amazon.com, Inc.
• Apple Inc.
• Rakuten Group, Inc.
• The Walt Disney Company
• Vudu LLC
• Redbox Automated Retail LLC
• Bigtree Entertainment Pvt. Ltd
• Alphabet Inc.
• Hulu LLC
• DIRECTV, LLC.

By Type	By Vertical	By Region
Electronic Sell Through Download to Rent	Media & Entertainment Education Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Transactional Video on Demand Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Transactional Video on Demand Market, By Type:

• Electronic Sell Through
• Download to Rent

• Transactional Video on Demand Market, By Vertical:

• Media & Entertainment
• Education
• Others

• Transactional Video on Demand Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE