The AVOD services market is a growing segment of the video streaming industry comprising advertising-based video on demand streaming services offered by major streaming platforms and media companies. AVOD services allow users to stream television shows, movies and other audio-visual content for free in exchange for watching ads. The streaming services offer a large library of content across genres at no monthly subscription cost, making them appealing to cost-conscious viewers. New users can access a wide range of popular movies, shows and live sporting events without any signups or credit card details.
The Global AVOD Services 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 2023 to 2030.
Key Takeaways
Key players operating in the AVOD services 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).
Key opportunities in the market include increasing internet and smartphone penetration in developing regions providing access to large untapped consumer bases. Major media companies are investing heavily in producing original quality content exclusively for their AVOD platforms to engage more viewers.
Technological advancements such as integration of AVOD apps on smart TV interfaces and streaming devices are improving user experience. Voice enabled search is enhancing content discovery. Personalized recommendation engines using AI/ML are helping users find relevant content quickly.
Market drivers: The rise of broadband internet and affordable smart TVs have enabled widespread adoption of streaming services. As data costs fall, viewers can enjoy ad-supported content on mobile phones as well. Content owners prefer AVOD platforms to monetize library through advertising rather than rely solely on SVOD subscriptions. Demand for free entertainment alternatives is driving user base growth for major AVOD services.
Current Challenges in AVOD Services Market:
The AVOD services market is facing challenges like increasing bandwidth costs and dependence on advertisements. As more people are consuming video content online through streaming services, the content delivery networks (CDNs) of these companies are experiencing higher bandwidth costs. With growing competition in the market, maintaining profitability is also a challenge. Most players in this market generate majority of their revenues from advertisements. But changing privacy policies and regulations around user data collection can impact their ability to target personalized ads. Delivering consistent user experience across devices and platforms is another major challenge faced by AVOD services.
SWOT Analysis
Strength: Growing popularity of free streaming services among consumers. Ability to target ads based on user data leads to better returns for advertisers.
Weakness: Reliance on advertising makes revenues vulnerable to downturns. Technology and infrastructure require continuous investments to manage growing user traffic.
Opportunity: Expanding media consumption on mobile devices presents an opportunity to reach new audiences. Partnerships with device manufacturers provide access to larger user bases.
Threats: Stricter privacy laws can restrict targeted advertising. Entry of tech giants with deeper pockets increases competitive pressure. Subscription fatigue among users threaten ad-supported model.
Geographical Regions
North America accounts for the largest share in the global AVOD services market currently in terms of value. This is due to strong penetration of streaming devices and widespread availability of high-speed internet in countries like the US.
Asia Pacific region is expected to grow the fastest during the forecast period from 2023 to 2030. Countries like India, China and Japan have a large young population increasingly adopting online streaming for entertainment on mobile devices. Initiatives to improve digital infrastructure will further propel market growth in Asia Pacific region.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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