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AVOD (Advertisement-based Video on Demand) services refer to free streaming services that are supported by advertisements. The major AVOD platforms offer a variety of TV shows, movies, sports, and other digital content for free to viewers. Examples include YouTube, Pluto TV, Crackle, Tubi, and The Roku Channel. These services allow users to enjoy on-demand streaming without any subscription fees.
The global AVOD Market is dominated by major tech companies like Google, Amazon, Roku, and Comcast. The global AVOD 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 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing preference among viewers towards free content along with rising internet penetration is expected to drive the growth of the AVOD services market. According to a survey, about 80% of viewers are interested in watching free streaming video content with ads rather than subscribing to paid streaming platforms. Additionally, robust infrastructure development facilitating high-speed internet connectivity across major countries is another factor boosting the popularity of AVOD services. For instance, Project Gigabit by the UK government aims to roll out gigabit-capable broadband nationwide by 2025. Furthermore, integration of advanced technologies such as AI and machine learning by AVOD providers to enhance personalized content recommendation is anticipated to provide new revenue opportunities over the forecast period. However, evolving viewer preferences towards tailored content experience and growing subscription of paid Video on Demand (SVOD) platforms like Netflix may challenge the growth of the AVOD market to some extent in the coming years.
Key players operating in the AVOD services market 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). Google’s YouTube and Hulu (Disney) dominate the global market, with a vast library of content across various genres and languages. Newer entrants are focusing on regionalization and personalization to gain market share.
Segment Analysis
The global AVOD services market can be segmented based on vertical, content genre, and device type. The content genre segment comprises entertainment, sports, fashion and lifestyle, and others. The entertainment segment dominates the market as it caters to both children and adults. Viewers across all age groups find content across various genres of entertainment engaging and binge-watch shows and movies across platforms.
PEST Analysis
Political: Regulations around streaming platforms and content hosting vary across regions. Consistent regulations can help the market reach its full potential.
Economic: Rising internet penetration and affordable data plans are driving the adoption of AVOD platforms. Growing disposable incomes allow viewers to opt for multiple paid subscriptions as well as use AVOD platforms.
Social: Changing content consumption patterns, especially among millennials and Gen Z, are driving the market. Viewers prefer on-demand and short-form content on mobile devices.
Technological: Advanced technologies around analytics, AI, and personalized experiences are enhancing user engagement. Improvements in edge computing and 5G rollout will further boost the market by enabling seamless streaming of high-definition content.
Regional Analysis: Rising internet penetration, digital transformation, and affordable data plans are driving the market in developing regions of Asia Pacific and Latin America. China, India, and Brazil are emerging as high growth regional markets.
Key Takeaways
The global AVOD Market is expected to witness high growth over the forecast period.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
