The global AVOD Services Market is estimated to be valued at US$28.09 billion in 2023 and is expected to exhibit a CAGR of 14.2% over the forecast period of 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The AVOD (Advertising Video on Demand) Services market refers to platforms that offer video-on-demand content to viewers for free, supported by advertisements. These services allow users to access a wide range of movies, TV shows, and other video content at no cost, while generating revenue through advertising. AVOD services provide a cost-effective solution for viewers to access entertainment content, eliminating the need for paid subscriptions. This market is driven by the increasing digital advertising budgets of companies and the growing popularity of video streaming platforms.
Market Key Trends:
The key trend driving the AVOD Services market is the shift towards digital advertising. With the increasing number of viewers turning to online platforms for entertainment, advertisers are recognizing the potential of AVOD services to reach a wide audience. This trend is further fueled by the rise in demand for personalized and relevant advertisements. AVOD services offer targeted advertising options based on user preferences and behavior, allowing advertisers to deliver more effective campaigns. Additionally, technological advancements in programmatic advertising and data analytics are enhancing the capabilities of AVOD platforms, enabling better targeting and optimization of ads.
PEST Analysis:
Political: The political landscape plays a crucial role in the AVOD services market. Government regulations and policies regarding content distribution, censorship, and data privacy can have a significant impact on the operations of AVOD platforms.
Economic: The growth of the AVOD services market is closely tied to the economic conditions of the countries where these services operate. Factors such as disposable income, consumer spending patterns, and advertising budgets influence the demand for AVOD services.
Social: Changing social dynamics and consumer preferences contribute to the growth of the AVOD services market. The increasing adoption of digital platforms, changing content consumption habits, and the demand for personalized and on-demand entertainment drive the growth of AVOD services.
Technological: Technological advancements, such as the widespread availability of high-speed internet and the proliferation of smart devices, have enabled the growth of AVOD services. Innovations in streaming technologies, data analytics, and targeted advertising capabilities have also transformed the AVOD landscape.
Key Takeaways:
The Global AVOD Services Market Size is expected to witness high growth, exhibiting a CAGR of 14.2% over the forecast period of 2023-2030. This growth can be attributed to several factors, including the increasing penetration of smartphones and internet connectivity worldwide. The growing adoption of streaming services, coupled with the demand for free and ad-supported content, is fueling the growth of the AVOD market.
In terms of regional analysis, North America is projected to be the fastest-growing and dominating region in the AVOD services market. This can be attributed to factors such as the strong presence of key players, high internet penetration, and technological advancements in the region. Additionally, the increasing popularity of streaming platforms and the availability of a wide range of content contribute to the market’s growth in North America.
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 are actively participating in strategic initiatives such as partnerships, acquisitions, and content collaborations to expand their market share and gain a competitive edge.
In conclusion, the AVOD services market is poised for significant growth, driven by technological advancements, changing consumer preferences, and favorable economic conditions. The dominance of key players, particularly in North America, highlights the intense competition within the industry. The market is expected to offer lucrative opportunities for both existing and new entrants in the coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.