The Future of the Internet as a business platform

Video on demand (VOD) – market and business model insights

Additional information: How YouTube TV Will Stack Up In The OTT Market, Streaming Video Business Models, These Are Mary Meeker’s Internet Trends for 2018

The over the top television market is primarily composed of subscription based video on demand, Transactional VOD and Ad VOD services. The combined market size of the OTT market was estimated at $29.4 billion in 2015, and is expected to grow to over $64 billion by 2021, a CAGR of over 14%.

The Subscription VOD space, whereby users subscriber to streaming services, makes up over 40% of the OTT market, with most of the revenue coming from the US. The dominant player in SVOD is Netflix, which reported streaming revenues of $8.3 billion in 2016. Transactional VOD services allow customers to purchase content on demand, from pay-TV providers or third party platforms such as iTunes, Amazon and Google Play. TVOD currently makes up a small portion of the total OTT market. Lastly, the AVOD model lets users view content for free, while the content platform and generator makes money by showing relevant ads. While YouTube is by far the industry leader, this model is gaining traction among other players in the industry.

Internet-enabled businesses went through an incredible growth since 2000. While during the crash nearly being considered dead by some, now Internet-related businesses seem to have reached some saturation and dominant players rule. Will we see a phase of reduced – commodity like – developments or are we just at the beginning of new innovation waves? In this slot we will discuss how the Internet continues shaping the future of businesses and our lives.

Below some numbers showing how much the Internet influences us all and who the dominant players are and probably will be:

  • 3.6 billion people are connected to the Internet, this is 50% of world population
  • The world wide web continues to influence our lives in more and more ways
  • E-commerce sales continues to grow 15% and more every year
  • Amazon did 30% of all E-commerce sales worldwide
  • Number of trips taken by ridesharing doubled
  • On-demand and internet-related jobs are on the rise
  • China’s and the US rise seem unstoppable. Already now China has 9 of the top 20 biggest internet companies by market cap. US has 11. 5 years ago the US had 9 and China 2.
  • With the end of net neutrality, businesses will rely on customization trends and utilize features like combining data with AI or machine learning to predict online and in-store shopping preferences.
  • The customer experience will feel “friendlier” as stores use AI and tracking features to enhance consumer shopping experiences.


Hans-Jörg Dohrmann

Hans Dohrmann ist Investment Partner bei Scail Capital.

Er ist verantwortlich für die Identifikation spannender Startups und deren gesamtheitliche Betreuung während/nach der Investition.

Hans hat in den vergangenen 13 Jahren sowohl in-house startups für Grosskonzerne, als auch eigene Unternehmungen zusammen mit Mitgründern erfolgreich im Markt platziert.

Vor seiner Zeit als Unternehmer arbeitete der promovierte Wirtschaftsjurist in verschiedenen Rollen (Strategy, Business Development etc.) bei führenden internationalen Unternehmen.

Privat ist er ein begeisterter Freeride Snowboarder und Motorradfahrer.

Carlos Cantu

A Creative Director who become a Marketer and is currently working for Twitter.

I joined Twitter as Head of Brand Strategy for Spanish Speaking LATAM during 3 years. Now I am leading the Business Marketing team for Europe and the Middle East.

Prior to this, I was a Creative in the Advertising Industry for more than fifteen years. Started in traditional advertising and then became an integrated creative, developing traditional, digital, experiential and shopper marketing projects. I've worked for brands such as AB Inbev, Coca-Cola, Samsung, Danone, Heineken, Ford, Land Rover, Avon, Santander Bank, Greenpeace, Gatorade & Unilever among many others.