Europe’s video‑on‑demand sector is entering a pivotal phase, according to the 2025 specialised study Video on Demand in Europe 2025‑2028: The Power of Sport published by ITMedia Consulting. The firm estimates that VOD revenues in Western Europe will grow to approximately €35 billion by 2028, representing a compound annual growth rate (CAGR) of 9 % from current levels. While subscription‑based VOD (SVOD and TVOD) is expected to enter a phase of maturity, growth will be driven by the advertising‑supported video‑on‑demand (AVOD) model — with AVOD services projected to expand their share of the market from 25 % in 2025 to 30 % by 2028.
The report emphasises that sport is a central growth vector in the evolving streaming ecosystem. ITMedia notes that the integration of live and on‑demand sport is reshaping audience expectations — “audiences are no longer satisfied with a single linear stream: they demand complete and multidimensional access to the sports experience.” This aligns with findings that while SVOD’s growth will outpace TVOD, it will be the ad‑supported services that fuel the greatest market share expansion.
ITMedia points out that after two years of slowdown in Western Europe, the VOD market is showing clear signs of recovery. The firm writes that “the next few years will mark a turning point for the video streaming industry, between new business models, the strategic integration of sporting content and a growing personalization of the user experience.” It adds that AVOD services will “contribute even more than paid services to the sector’s growth, with double‑digit growth rates,” though it warns they will not replace SVOD as the dominant model.
For industry stakeholders, the findings carry important strategic implications. VOD platforms that secure live sport rights and develop hybrid AVOD‑SVOD offerings stand to capture shifting consumer interest. Meanwhile, broadcasters and advertisers must reassess model assumptions in favour of multi‑platform strategies. The forecast of €35 billion in VOD revenues, and the projected rise of AVOD share to 30 %, mark a crucial inflection point for European streaming markets.