July 19, 2024
Ict

On-Demand Video Streaming is Projected to Fuel the Growth of the Global AVOD Services Market

AVOD services provide free access to a large catalog of TV shows, movies, news and other short-form content across various devices through supported apps and websites. As it eliminates subscription fees, AVOD attracts a massive mainstream audience and benefits advertisers with potential customer reach. The personalized recommendations and seamless user experience also enhance viewer engagement and retention.

The global AVOD Services Market 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.

AVOD or Advertising-based Video-on-Demand services provide free streaming of content to users supported by advertisements. The rising demand for more convenient and flexible viewing experience has boosted the popularity of on-demand video streaming services. AVOD services capitalize on this trend by providing a wide variety of free entertainment content to viewers and generate revenues from advertisements.

Market key trends:
The growing preference of audiences towards free streaming platforms has accelerated the importance of targeted and non-intrusive advertising strategies among AVOD providers. Many services now offer streamlined ad formats including video overlays and programmatic ad insertion to optimize viewer experience while generating optimal returns for advertisers. Improved data analytics further assist in delivering highly customized and effective campaigns aligned with individual viewer preferences and behaviors. This helps build trust in the advertising model and expands revenues for continued investment in premium content libraries.

Segment Analysis

Content: The global AVOD services market is dominated by the online video streaming segment. This segment accounted for the largest market share in 2023 owing to the increasing demand for on-demand video streaming services among consumers. Online video streaming allows users to watch videos on various devices including smartphones, smart TVs, laptops, gaming consoles and more through the internet. This flexibility and convenience offered by online video streaming has made it the preferred choice for consuming AVOD content.

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), The Roku Channel (Roku), Popcornflix (Screen Media Ventures), MX Player (Times Internet), Voot (ViacomCBS). These players are focusing on expanding their content libraries and strengthening their distribution networks globally.

Key Takeaways

Market size: The global AVOD services market size is expected to witness high growth, exhibiting a CAGR of 14% over the forecast period, due to increasing digital media consumption and rising smartphone and internet penetration.

Regional analysis: North America dominated the global AVOD services market in 2023 owing to strong internet infrastructure and high adoption of mobile streaming services in countries like United States. Asia Pacific is expected to be the fastest growing regional market between 2023-2030 with China, India and Japan emerging as major revenue generators.

*Note:

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