April 24, 2024
AVOD Services Market

The Rising Popularity Of Digital Video Platforms Is Anticipated To Openup The New Avanue For AVOD Services Market

Market Overview:

AVOD services refer to advertising-based video on demand platforms that allow users to stream movies and TV shows for free with advertising interruptions. Some key players in this market include YouTube, Hulu, Tubi, Pluto TV, IMDb TV, Roku Channel, and Plex among others. These platforms allow users access to a large library of on-demand videos supported by advertisements. As traditional pay TV subscribers continue to cut the cord, AVOD services are gaining popularity as a cheaper alternative.

Market Dynamics:

The growth of the global AVOD services market is driven by the increasing internet penetration and rise of mobile and OTT platforms. According to reports, the number of internet users globally reached over 5 billion in 2020 with over 95% of them accessing the internet through mobile devices. Growing preference for online streaming over traditional television is another key factor fueling the demand for advertising-based video platforms. Additionally, the increasing availability of low-cost smartphones and affordable data plans in developing countries is also expected to boost the adoption of AVOD services during the forecast period. While concerns around data privacy and targeted advertising remains a challenge, growing investments by major players to enhance content libraries and platform experience is projected to present lucrative growth opportunities for the AVOD services industry across the world.

The global AVOD Services Market Growth is estimated to be valued at US$ 28.09 Bn in 2023 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Segment Analysis

The AVOD Services market can be segmented into international and regional platforms. International platforms like YouTube, Hulu, Peacock etc dominate the market as they provide a mix of exclusive and syndicated content across different genres appealing to wider audiences worldwide. Their large content libraries, heavy investments in original productions and easy accessibility across screens have helped them gain significant user base globally.

PEST Analysis

Political: No major regulations currently impact the AVOD market. However, policies around data privacy and internet infrastructure might affect user growth.
Economic: The rising internet and smartphone penetration along with affordable data plans are driving the adoption of AVOD platforms especially in developing nations.
Social: Changing media consumption patterns and increasing preference for on-demand viewing on mobile devices are propelling the popularity of AVOD services.
Technological: Developments in broadband connectivity, AI/ML, VR/AR are enhancing the content discovery and personalized experiences on AVOD platforms.

Key Takeaways

The global AVOD Services market is expected to witness high growth, exhibiting 14% CAGR over the forecast period, due to increasing smartphone and internet penetration globally. The market size is projected to reach US$ 60.32 Bn by 2030.
Regional analysis: North America currently dominates the AVOD market led by the US, owing to high broadband speeds and rising cord-cutting. Asia Pacific is expected to be the fastest growing market with countries like India and China emerging as lucrative opportunities for players because of increasing mobile and digital payments adoption.

Key players: Key players operating in the AVOD Services market 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). They are focusing on expanding content libraries and introducing personalized curation to boost viewer engagement.

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