Market Overview:
AVOD (Advertising-based Video on Demand) services refer to video streaming services that are free for users and supported by advertising. They allow users to stream movies, TV shows, news and other videos without requiring a subscription. The key advantages of AVOD services include their low/zero cost to the user as well as wide availability of content libraries. With vast content and zero subscription fees, AVOD services have gained significant popularity among users, especially in emerging economies.
Market key trends:
One of the key trends in the AVOD services market is the growing focus on providing personalized user experiences. Major players are investing in advanced technologies like artificial intelligence and machine learning to gain deeper insights into user preferences. This helps in serving customized and contextually relevant ads to users. Another major trend is the increasing integration of AVOD services with digital platforms and devices. Players are partnering with Smart TV and mobile device makers to pre-install their apps and make content discoverable. This enhances accessibility and drives user engagement with AVOD services.
The global AVOD Services Market Growth is estimated to be valued at US$ 28.09 Bn in 2023 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the AVOD Services Market is moderate. Established players dominate the market and launching a new ad-supported video on demand service requires significant upfront capital to develop content libraries and brand recognition.
Bargaining power of buyers: The bargaining power of buyers is high. AVOD services are growing in popularity and viewers have many options to choose from. Buyers can easily switch between different services based on available content.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While top content creators and owners can negotiate better terms, there are also many independent producers who rely on these platforms for content distribution.
Threat of new substitutes: The threat of substitutes is high as viewers have increasing options for streaming content including transactional video on demand and subscription video on demand. Traditional TV and user-generated content on social media also pose a threat.
Competitive rivalry: Intense as major players compete to attract and retain viewers through exclusive and original content.
Key Takeaways
The global AVOD Services Market size is expected to witness high growth, exhibiting a CAGR of 14.% over the forecast period, due to increasing demand for low-cost and easily accessible digital entertainment worldwide.
Regional analysis: North America is expected to dominate the AVOD services market, followed by Asia Pacific. The USA is the largest market with established players gaining massive scale. However, Asia Pacific is anticipated to grow at the fastest pace due to rising internet and smartphone penetration in the region.
Key players: Key players operating in the AVOD Services market include 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). Major players are differentiating through exclusive and high-production value original content to attract subscribers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
