June 25, 2024
Ict

AVOD Market Growth Accelerated by Expansion of Mobile and OTT Platforms

AVOD (Advertising Video On Demand) services provide viewers access to a wide selection of television shows, movies and events through online streaming platforms without the requirement of subscriptions. Some of the key advantages of AVOD services include free access to premium content libraries, easy availability on mobile and OTT platforms and opportunity for brand advertising. With growing internet and smartphone penetration coupled with increasing preference for on-demand viewing, AVOD services have gained significant popularity in recent years.

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 key trends:
One of the major trends driving the growth of the AVOD services market is the exponential expansion of mobile and OTT platforms. Traditionally, AVOD services were limited to desktop viewing and web browsers. However, with the availability of high-quality, low-cost smartphones and widespread high-speed mobile internet access, streaming of content on mobile devices has emerged as the most popular medium. AVOD service providers are actively expanding their offerings across Android and iOS platforms to leverage the mobile revolution. They are also building robust OTT integrations with Smart TV platforms to offer a seamless streaming experience across devices. This multi-platform availability has tremendously boosted the reach and revenues of AVOD services worldwide.

Key players: The global AVOD services market is highly concentrated with top players such as 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) occupying major share. YouTube, being the leading video platform globally, has the largest user base for AVOD services with over 2 billion monthly users watching billions of hours of free content daily.

Segment Analysis
The global AVOD services market is dominated by the streaming video segment which currently holds around 50% market share. This is because video streaming forms the core function of all AVOD services as they allow users to stream unlimited video content including movies, shows, news and more for free in exchange of watching ads. With rising internet penetration and availability of affordable smartphones, the demand for on-demand video streaming has grown remarkably over the past few years.

Regional analysis: North America currently leads the global AVOD services market with over 30% share aided by high smartphone and internet penetration along with growing popularity of streaming services among consumers. The United States represents the fastest growing region in North America on account of wide availability of free ad-supported platforms like Pluto TV, Peacock, Tubi and Crackle.

Key Takeaways
The global AVOD Market is expected to witness high growth over the forecast period driven by increasing preference of consumers towards free ad-supported content.

*Note:

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