AVOD (Advertising-based Video on Demand) services provide a medium for viewers to access streaming video content, such as movies and TV shows, for free in exchange for watching advertisements. These services allow viewers to access a catalog of on-demand movies and TV shows without having to pay a monthly subscription fee. Users can stream and watch content on-demand across a variety of devices, including connected TVs, desktops, smartphones, and tablets. AVOD services are gaining widespread popularity as they provide an affordable means for viewers to access premium on-demand video content without incurring any costs.
The Global AVOD Services Market is estimated to be valued at US$ 28.09 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030.
With the growing preference for online video streaming services and increasing internet penetration worldwide, the demand for AVOD services has increased considerably in recent years. AVOD platforms have been adopting an expansive approach and investing aggressively in creating original content to engage users and drive greater viewership.
Key Takeaways
Key players operating in the AVOD Services are YouTube (Google), Hulu (Disney), Peacock (NBCUniversal), Tubi (Fox Corporation), Pluto TV (ViacomCBS), IMDb TV (Amazon), Roku Channel (Roku), Crackle (Chicken Soup for the Soul Entertainment), Xumo (Comcast), Vudu (Walmart), The Roku Channel (Roku), Popcornflix (Screen Media Ventures), MX Player (Times Internet), Voot (ViacomCBS).
The key opportunities in the AVOD Services Market include the growing popularity of free streaming options among cost-conscious consumers and increasing slate of original programming by AVOD platforms to gain subscribers. Major players are investing heavily in creating compelling programming to drive subscriptions and viewership.
AVOD platforms are also expanding their global footprint by launching their services in new international markets. They are partnering with cable operators, telcos and CE companies to bundle their offerings. This helps accelerate penetration into new customer segments worldwide.
Market drivers
– Increasing preference for free ad-supported content among consumers as a cost-effective alternative to paid subscriptions
– Aggressive investments by leading platforms in producing original programs to engage viewers
Market restraints
– Challenges around measuring viewership metrics for ad inventory in AVOD platforms
– Threat of cord-cutting and migration of viewers to subscription-based video streaming services
Segment Analysis
The AVOD services market can be segmented into Over-the-top (OTT), mobile devices, and digital media. OTT is dominating the market as it allows content providers high flexibility to stream content via internet on any device. With increasing internet penetration, cord cutting, and availability of affordable internet data plans, OTT platforms are gaining popularity. Consumption of video content on mobile devices is also rising as smartphones have become an integral part of daily lives and people prefer consuming content on-the-go.
Global Analysis
Regionally, North America dominates the AVOD services market currently due to high internet penetration and widespread adoption of OTT platforms. The Asia Pacific region is fastest growing due to increasing disposable incomes, rising millennial population, and availability of affordable internet and smartphones in countries like India and China. Key factors like increasing entertainment budgets, improving broadband infrastructure, and more time spent online are fueling the growth of AVOD services in emerging regions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
