February 21, 2024
AVOD Services Market
Ict

Video On Demand Services Is The Largest Segment Driving The Growth Of AVOD Services Market

Market Overview:

AVOD services provide viewers with free access to a variety of on-demand movies, TV shows, and videos supported by advertisements. It offers a cost-effective alternative to traditional paid video streaming platforms. With the rise in internet and smartphone penetration worldwide, there is a growing demand for free online video content.

Market key trends:

Adoption of AVOD services is increasing rapidly due to the availability of a large library of content for free. Growing preference for consuming video content on mobile phones has boosted the adoption of mobile AVOD apps. Integration of innovative technologies such as VR/AR is also expanding content choices for viewers. Major players are actively pursuing global expansion and partnerships with content producers to enhance their content portfolio. Growing popularity of short-form videos on social media platforms is also prompting traditional players to explore short video formats for retaining viewer attention span.

The AVOD services market is witnessing increasing adoption of advanced technologies such as artificial intelligence, machine learning and deep learning. Major players in the market are focusing on integrating these technologies to provide personalized content recommendations and improve user experience on their platforms. For instance, Netflix heavily utilizes AI-based recommendation engines to understand users’ watching patterns and recommend relevant content.

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.

SWOT Analysis

Strengths: Growing popularity of video streaming services due to the availability of large libraries of on-demand movies and TV shows. Increasing mobile and smart TV adoption is also driving the market growth.

Weaknesses: Ad-supported services face challenges around delivering effective advertising reach compared to subscription models. Depends on third party platforms/app stores for distribution and access which can impact revenues.

Opportunities: Scope for integrating advanced technologies like AI for improved user engagement and content discovery. Expanding to newer demographics and international markets presents major opportunities.

Threats: Rapid change in consumer preferences impact demand and revenue models. Intense competition from paid subscription platforms can reduce viewership base over time.

Key Takeaways

The global AVOD services market size was valued at US$ 28.09 Bn in 2023. The market is expected to witness high growth, exhibiting a CAGR of 14% over the forecast period, due to increasing mobile and smart TV adoption driving video streaming.

Regionally, North America dominated the global AVOD services market in 2023 with over 30% revenue share. The presence of key players and advanced mobile and broadband infrastructure has resulted in early adoption of AVOD platforms in the region. Asia Pacific is expected to be the fastest growing market, driven by increasing penetration of low-cost smartphones and cheap data plans.

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), The Roku Channel (Roku), Popcornflix (Screen Media Ventures), MX Player (Times Internet), Voot (ViacomCBS), Tubi TV (Fox Corporation).

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it