June 13, 2024

AVOD Market Propelled by Surging Demand for Ad-supported VOD Services

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. AVOD or Advertising-based video on demand services allow viewers to stream video content for free in exchange for watching commercials or ads. These services provide a vast library of on-demand movies, TV shows, news, sports and entertainment content to viewers without charging subscription fees. The services are supported by ads which help content owners and streaming platforms to generate revenue.

Market key trends:

Surging demand for ad-supported video streaming services among cost-conscious viewers has been a key driver propelling the growth of the global AVOD services market. The advertisement-supported business model of AVOD services makes the content accessible to viewers at no monetary cost while also allowing content owners and streaming platforms to monetize their content through advertisements. According to surveys, many viewers prefer the ad-supported services to subscription-based services due to affordable access to a large catalog of content without paying subscription fees. This has significantly boosted the popularity of various AVOD services such as YouTube, Pluto TV, Tubi, Peacock and Roku Channel among viewers globally. The market is expected to further grow at a robust pace during the forecast period driven by increasing preference of viewers for low-cost or free streaming options with ads.

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).

SWOT Analysis
Strength: AVOD services offer free streaming to users with minimal or no upfront costs. They provide wider content libraries and can generate more viewerships.
Weakness: The content available is often limited and not recent blockbuster titles. They depend mainly on advertisements for revenues which affect the viewing experience.
Opportunity: The growing popularity of streaming media provides an opportunity to gain new subscribers. Partnerships with content creators can help expand their content libraries.
Threats: Competition from paid video streaming services and user preference of ad-free experience. Stricter regulations around data privacy and usage can affect their business models.

Regional Analysis: North America currently dominates the market due to high adoption of streaming media in the region. Growth in internet access and rising popularity of mobile viewing are also driving the regional market.

Key Takeaways
The global AVOD Market is expected to witness high growth over the forecast period.

*Note:

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