July 12, 2024
AVOD Services Market

AVOD Services Market to Reach US$28.09 Billion in 2023: CAGR of 14.2% Foreseen

Market Overview:
The AVOD Services market refers to the Advertising-supported Video-on-Demand services that offer free content to users, which is financially supported by advertisements. These services have gained popularity due to the convenience they provide to users, allowing them to access a wide range of content without the need for a subscription. AVOD services offer advantages such as cost-effectiveness, diverse content libraries, and ease of access. The increasing demand for online streaming, coupled with the rising popularity of digital advertising, is contributing to the growth of this market.

Market Key Trends:
One key trend in the AVOD Services market is the growing collaboration between AVOD platforms and content creators. To enhance user engagement and retention, AVOD platforms are partnering with production houses and individual content creators to offer exclusive content. This trend benefits both parties, as AVOD platforms gain access to unique and high-quality content, while content creators gain wider exposure and monetization opportunities through advertisements. Additionally, these collaborations also promote the growth of the AVOD Services market by attracting more users and increasing advertising revenue. Such partnerships are expected to play a significant role in shaping the competitive landscape of the market in the coming years.

Segment Analysis:

The AVOD services market can be segmented based on the type of content and the end-user. In terms of content type, the market is dominated by movies and TV shows, accounting for the largest share. This dominance can be attributed to the high demand for streaming popular movies and TV series among consumers. The availability of a vast library of movies and TV shows on AVOD platforms attracts a large user base, contributing to the dominance of this segment.

In terms of end-users, the AVOD services market can be divided into two segments: individual consumers and commercial users. Among these, individual consumers hold the majority share in the market. This can be attributed to the increasing consumer preference for ad-supported free streaming platforms compared to paid subscription-based services. Additionally, the ease of access and availability of a wide range of content on AVOD platforms cater to the diverse entertainment needs of individual consumers.

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. Firstly, the increasing adoption of digital platforms and mobile devices is driving the demand for AVOD services. With the proliferation of smartphones and tablets, consumers have a convenient way to access and stream content on AVOD platforms.

Regionally, North America is expected to be the fastest-growing and dominating region in the AVOD services market. This is primarily due to the strong presence of key players in the region, such as YouTube, Hulu, and Tubi. The region also has a high internet penetration rate and a large consumer base with a preference for online streaming services. Additionally, the increasing disposable income and changing consumer viewing habits in North America contribute to the growth of the AVOD services market.

Key players operating in the AVOD services market include YouTube (Google), Hulu (Disney), Peacock (NBCUniversal), Tubi (Fox Corporation), and Pluto TV (ViacomCBS). These companies have established themselves as leaders in the market and have a wide user base. They continuously innovate their platforms, offer personalized recommendations, and secure partnerships with content creators to attract and retain users. The presence of these key players ensures intense competition in the market, driving the overall growth of the AVOD services industry.

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