The Rise of Video on Demand (VOD) in Iran: A Lucrative Market for Businesses

In recent years, Video on Demand (VOD) platforms have experienced remarkable growth and popularity in Iran. This surge in demand has propelled VOD marketing to the forefront as a crucial strategy for businesses seeking to engage with Iranian audiences. With an impressive projected market volume and increasing user penetration rate, Iran's VOD market presents lucrative opportunities for marketers and content creators.

Iran’s VOD Market Growth and Potential

According to a report from, it was anticipated that the VOD market in Iran would soar to an impressive US$338.90 million in 2023, with an annual growth rate of 6.72% from 2023 to 2027. As a result, the market volume is expected to reach US$439.60 million by 2027. Among all the segments in the market, Video Streaming (SVOD) holds the largest share, with a market volume of US$242.30 million in 2023, indicating a strong demand for streaming services among Iranians.

Increasing User Base and Engagement

Even with stringent regulations in place, VOD platforms are becoming increasingly popular in Iran, providing a wide variety of locally created content and drawing in a growing user base. It is projected that by 2027, the number of VOD users in Iran will soar to an impressive 44.4 million, creating a substantial audience for businesses to reach out to and connect with.

Moreover, according to, the rate of user penetration is projected to rise from 44.1% in 2023 to 49.1% by 2027, indicating the growing acceptance and involvement of VOD services within the Iranian community. This increasing trend presents a substantial opportunity for companies to engage with a broader audience and establish a solid presence in the Iranian market.

SVOD in Iran: A Trending Advertising Channel 

The research conducted by Nexlooks Market Research Agency in Iran, updated in December 2023, shows that Subscription Video on Demand (SVOD) has gained popularity as a VOD platform among the AB demographic, particularly among viewers aged 30-45, who make up 21.7% of SVOD viewers.

In Iran, SVOD platforms generate revenue not only through subscription fees but also through advertising displayed to viewers, a practice that may be uncommon in Western countries. Therefore, SVOD is seen as an effective channel for advertising premium and upper-class brands. This presents significant opportunities for brands and businesses to engage with their Iranian audience where they are most active.

The overall penetration rate of SVOD in Iran was 13.6% in September 2023. This figure only includes subscribers who watch programs through purchased subscriptions. Most users fall into the category of light SVOD users in terms of usage volume, often following one or two series, with only 1.7% being heavy users (watching more than 7 hours per week).

Opportunities for Brands, Marketers, and Content Creators

The potential for VOD in Iran is undoubtedly promising, and it's crucial for businesses to recognize the potential of this expanding market. By implementing effective strategies and providing tailored content, marketers and content creators can capitalize on the opportunities presented by this growing sector.

To thrive in Iran’s VOD market, businesses need to prioritize understanding the preferences and cultural intricacies of the local audience. Adapting content to align with Iranian viewers' specific tastes and interests allows companies to forge strong connections and cultivate a loyal customer base.

In addition, forming partnerships with domestic production companies and influential figures can assist companies in boosting their presence and reputation in the Iranian market. By teaming up with a trusted local advertising agency and utilizing their impact, brands can efficiently expand their reach and establish trust among Iranian customers.


The rapid growth of VOD platforms in Iran presents an exciting market trend with immense potential for businesses. With a projected market volume of US$439.60 million by 2027 and an increasing user penetration rate, the Iranian VOD market offers significant opportunities for marketers and content creators.

To succeed in this fast-growing market, businesses should adopt localized strategies, produce culturally relevant content, and collaborate with local influencers. To succeed in this fast-growing market, businesses should adopt localized strategies, produce culturally relevant content, and collaborate with local influencers. Having a proven track record and over 26 years of experience in advertising, Badkoobeh Creative Communication Solutions is the right choice to meet your VOD marketing needs. To view our sample works, please visit Badkoobeh YouTube channel.

[Sources: & Nexlooks Market Research Agency]