by Market Overview:
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. AVOD (Advertising-based Video on Demand) services refer to platforms that offer streaming content to viewers for free, supported by advertisements. These services have gained significant popularity due to their cost-effectiveness and extensive content libraries. AVOD services provide opportunities for advertisers to reach a large and diverse audience, while offering viewers access to a wide range of entertainment options.
Market Dynamics:
The AVOD services market is driven by several factors. Firstly, the increasing adoption of smartphones and internet connectivity has made it easier for users to access streaming services, leading to a growing demand for AVOD platforms. Secondly, the rising popularity of online video content and the shift towards digital advertising have fueled the growth of AVOD services. Advertisers are attracted to the potential reach and engagement offered by AVOD platforms, leading to increased investments in this market. Additionally, the availability of a vast content library and the ability to personalize recommendations based on user preferences have contributed to the popularity and success of AVOD services.
Market key trends:
The key trend in the AVOD Services market is the growing popularity of free ad-supported streaming platforms. With increased streaming options and rising subscription costs, consumers are turning to AVOD services as a cost-effective alternative. These platforms offer a wide range of content, including movies, TV shows, and original programming, all accessible without a subscription fee. Leading AVOD platforms like YouTube, Hulu, and Pluto TV have seen significant growth in their user base as users look for free streaming options. Additionally, these platforms rely on advertising revenue, allowing them to offer free content while still generating profit. The convenience and accessibility of AVOD services, combined with a vast library of content, are driving their popularity and adoption among consumers.
SWOT Analysis:
Strength:
AVOD services offer free access to a wide range of content, attracting a large user base and generating significant advertising revenue.
Weakness:
AVOD services may face challenges in monetizing their content due to consumer resistance to ad interruptions and the increasing use of ad-blockers.
Opportunity:
The global AVOD services market presents opportunities for growth and expansion, especially in emerging markets with increasing internet penetration and adoption of streaming services.
Threats:
Competition from subscription-based streaming services and piracy pose threats to the growth of AVOD services. Additionally, changes in advertising regulations and consumer preferences can impact the revenue generation of AVOD platforms.
Key Takeaways:
The global AVOD Services market is expected to witness high growth, exhibiting a CAGR of 14.2% over the forecast period (2023-2030). This growth is driven by the increasing demand for cost-effective streaming options and the availability of a vast library of content on AVOD platforms.
Regionally, North America is the fastest-growing and dominating region in the AVOD Services market. The region has witnessed significant adoption of AVOD platforms like YouTube and Hulu, fueled by high internet connectivity and a preference for free streaming options.
Key players 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 offer a diverse range of content and have established a strong presence in the AVOD services market.
