July 15, 2024
Ict

Projected Growth in AVOD Services is Expected to Boost the Global AVOD Services Market

 

AVOD services refer to advertisement video-on-demand services that allow users to stream videos for free in exchange for watching advertisements. It provides access to thousands of movies, TV shows, live news and sports and lots more on various connected devices like smart TVs, smartphones, tablets, streaming sticks and gaming consoles. With AVOD services, users get unlimited entertainment without committing to a monthly subscription. Major AVOD platforms offer large libraries of free content with short commercial breaks. This is encouraging more cord cutters and budget conscious consumers to opt for AVOD services over paid subscription-based video services.

The global AVOD Services Market 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.

Market Key Trends:

One of the key trends in the AVOD services market is the rise of mobile and tablet viewing. As smartphone and mobile internet penetration increases worldwide, AVOD platforms are optimizing their apps and mobile websites for easy viewing on smaller screens. They are adding features like download-and-watch offline viewing to cater to on-the-go consumption. Live TV and news viewing is also rising significantly through mobile AVOD apps. Platforms are investing heavily in original content production to engage users for longer duration. Originals in genres like drama, comedy, reality and documentaries are helping boost viewer loyalty and engagement. Regional language content is another focus area to tap the large non-English speaking population globally. With personalized recommendation engines and user profiling, AVOD services are able to deliver a highly customized content experience to each viewer.

Porter’s Analysis

Threat of new entrants: Low barriers to entry due to low capital requirement and availability of free streaming services. However, established players have strong brand recognition and content libraries.

Bargaining power of buyers: Buyers have significant bargaining power due to availability of numerous ad-supported options. Buyers can easily switch between services for content.

Bargaining power of suppliers: Content owners and producers have high bargaining power as AVOD services depend heavily on licensed and exclusive content.

Threat of new substitutes: Threat from other over-the-top (OTT) services like Subscription VOD (SVOD) and Transactional VOD (TVOD) presenting a potential switch for buyers.

Competitive rivalry: Intense competition among established players to gain subscribers and advertising dollars. Players compete on the basis of content quality, platform interface, marketing promotions.

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). These players are focusing on expanding their content libraries through licensing and partnership agreements to gain higher viewer engagement on platforms.

Key Takeaways

The global AVOD Services market size is expected to witness high growth, exhibiting a CAGR of 14.% over the forecast period, due to increasing consumption of OTT video content and growing preference for free streaming options among cost-sensitive consumers.

North America dominated the AVOD services market in 2023, accounting for around 35% share of the global market revenue, owing to strong proliferation of OTT services and rapid rise of cord-cutting. Asia Pacific is expected to witness fastest growth during the forecast period, exhibiting a CAGR of over 17%, driven by rising internet and smartphone penetration especially in developing nations like India and Indonesia.

*Note:

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