July 22, 2024
AVOD Services Market
Ict

Global AVOD Services Market Is Estimated To Witness High Growth Owing To Increasing Digitalization and Rising Demand for Free Streaming Content.

The 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

AVOD Services refer to advertising-supported video on demand platforms that offer free streaming content to users. These platforms generate revenue through advertisements that are displayed during the streaming of content. AVOD services have gained significant popularity in recent years due to their cost-effective nature and a wide range of content options available to users. With increasing digitalization and the growing preference for online streaming, AVOD services have become a preferred choice for consumers seeking free access to on-demand video content. Leading players in the market include YouTube (Google), Hulu (Disney), Peacock (NBCUniversal), Tubi (Fox Corporation), and Pluto TV (ViacomCBS), among others.

Market Dynamics:
The AVOD Services market is driven by two key factors. Firstly, the increasing digitalization and internet penetration across the globe have led to the widespread availability of online video content. This, coupled with the rising trend of cord-cutting and preference for digital streaming platforms, has fueled the demand for AVOD services. Secondly, the cost-effectiveness and convenience offered by AVOD platforms attract a large number of users who prefer free streaming content over subscription-based services. The availability of diverse content genres and personalized recommendations further contribute to the growth of the AVOD Services market. The market is expected to continue its upward trajectory with innovations in advertising techniques and the entry of new players in the market.

SWOT Analysis:

Strength: AVOD services market has been experiencing rapid growth due to its affordability and availability of free content. Furthermore, the market is supported by the increasing penetration of smartphones and high-speed internet, which enhances the accessibility of these services.

Weakness: One of the weaknesses of AVOD services is their heavy reliance on advertisements for revenue generation. This can sometimes result in a negative user experience and may lead to customer dissatisfaction. Moreover, the market faces intense competition from subscription-based streaming platforms that offer ad-free content.

Opportunity: AVOD services have the opportunity to tap into the growing demand for personalized and targeted advertisements. By leveraging user data and analytics, these platforms can provide relevant and engaging ads, thereby increasing user engagement and attracting more advertisers. Additionally, the increasing number of partnerships between AVOD platforms and content creators opens up opportunities for exclusive and original content offerings.

Threats: One of the major threats faced by AVOD services is the emergence of ad-blocking software, which allows users to bypass advertisements. This can significantly impact the revenue streams of these platforms. Additionally, the rise of piracy and illegal streaming websites poses a threat to the AVOD market, as users have access to free content without advertisements.

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 the increasing availability of affordable smartphones and high-speed internet, driving the demand for AVOD services.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the AVOD services market. This can be attributed to the presence of key players, technological advancements, and a high internet penetration rate in the 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 players hold a significant market share and continuously innovate to provide a competitive edge in the industry.

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