The global AVOD services market is estimated to be valued at US$ (Market Value for 2022) billion in 2022 and is expected to exhibit a CAGR of 14.2% over the forecast period of 2023-2030, according to a new report by Coherent Market Insights.
AVOD (Advertising-Based Video on Demand) services refer to digital platforms that offer free video streaming content to users, supported by advertisements. With the increasing accessibility of smartphones and internet penetration, AVOD services have gained significant popularity among consumers. They provide a wide range of content, including movies, TV shows, documentaries, and user-generated videos, without charging a subscription fee.
The advantages of AVOD services include the accessibility of free content, the ability to personalize viewing preferences, and the option to skip or minimize advertisements. These services cater to the growing demand for on-demand entertainment and offer a cost-effective alternative to traditional cable or satellite TV subscriptions.
Market Key Trends:
One key trend in the AVOD services market is the increasing adoption of targeted advertising. AVOD platforms offer advertisers the opportunity to reach a highly targeted audience based on user demographics, preferences, and viewing habits. By leveraging advanced data analytics and machine learning algorithms, AVOD platforms can deliver personalized ads to individual viewers, improving the effectiveness of advertising campaigns. This trend is driven by the need to maximize advertising ROI and optimize user experience by delivering relevant and engaging content.
Furthermore, AVOD services are expanding their content libraries to include more exclusive and original programming. Platforms like YouTube, Hulu, and Amazon’s IMDb TV are investing in producing and streaming exclusive shows and movies to attract and retain users.
The AVOD services market can be segmented based on platform, content type, and region. On the basis of platform, mobile devices dominate the market. With the increasing penetration of smartphones and tablets, consumers prefer to access AVOD services on their personal devices, making the mobile platform the dominating sub-segment. The convenience and flexibility offered by mobile devices, along with the availability of high-speed internet, contribute to the dominance of this segment.
In terms of content type, videos hold the largest market share. AVOD services primarily focus on providing free video content to users, including movies, TV shows, and user-generated content. Users are attracted to AVOD services due to the wide variety of videos available and the ability to watch them for free. Therefore, the video content type dominates the AVOD services market.
The global AVOD Services Market is expected to witness high growth, exhibiting a CAGR of 14.2% over the forecast period. This growth can be attributed to the increasing adoption of smartphones and tablets, as well as the availability of high-speed internet in both developed and emerging economies. These factors contribute to the increasing demand for AVOD services, as users can easily access and stream video content on their personal devices.
In terms of regional analysis, North America is the fastest growing and dominating region in the AVOD services market. This can be attributed to the presence of key players like YouTube (Google), Hulu (Disney), and Pluto TV (ViacomCBS), who have a strong user base in the region. Additionally, the high internet penetration and technological advancements in North America contribute to the growth of the AVOD services market in this region.
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), and Tubi TV (Fox Corporation). These key players have a strong market presence and offer a wide range of video content to attract and retain users.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it