The global ad-supported video on demand market (광고 지원 VOD 시장) is assessed to be worth US$ 40.12 billion in 2024. Projections indicate a substantial growth trajectory, with revenue from ad-supported video on demand solutions expected to soar at a Compound Annual Growth Rate (CAGR) of 14.2%. By the conclusion of 2034, the market is anticipated to achieve a remarkable market value of US$ 150.8 billion. This robust expansion underscores the increasing popularity and viability of ad-supported video on demand platforms as a dominant force in the global media and entertainment landscape, driven by evolving consumer preferences and the growing prominence of digital advertising.
The Ad-Supported Video on Demand (AVOD) market has emerged as a dominant force in the digital streaming landscape, offering viewers free access to a wide range of content supported by advertisements. Unlike subscription-based services, which require users to pay a monthly fee for ad-free viewing, AVOD platforms provide a cost-effective alternative, attracting a large and diverse audience. This model has gained traction in recent years, driven by the proliferation of internet-connected devices, the rise of digital advertising, and changing consumer viewing habits. AVOD platforms offer a vast library of movies, TV shows, and original content, catering to the preferences of viewers across various demographics and interests.
Market Insights
Insights into the AVOD market reveal a growing preference among consumers for free, ad-supported content streaming. As subscription fatigue sets in and consumers seek cost-effective alternatives to traditional cable and satellite TV, AVOD platforms provide an attractive option. Furthermore, advancements in ad targeting and personalization technology enable AVOD providers to deliver relevant and engaging advertisements to viewers, enhancing the overall viewing experience. This targeted advertising approach benefits both advertisers, who can reach their desired audience with precision, and viewers, who receive tailored content recommendations based on their interests and viewing history.
Market Outlook
The outlook for the AVOD market is optimistic, with continued growth expected in the coming years. As advertising budgets continue to shift towards digital channels, AVOD platforms stand to benefit from increased ad spending and a growing pool of advertisers looking to reach consumers in a fragmented media landscape. Moreover, the global reach of AVOD platforms and the accessibility of content across multiple devices further contribute to market expansion. With the proliferation of smart TVs, smartphones, and connected devices, AVOD services have become an integral part of the modern media ecosystem, offering advertisers unparalleled reach and engagement opportunities.
List of Key Companies Profiled in The Report
- YouTube
- Apple Inc.
- Cisco Systems, Inc.
- VUDU Inc.
- IndieFlix
- HBO Home Entertainment Inc.
- Compact Corp.
- Others
Market Opportunities
Opportunities abound in the AVOD market as platforms continue to innovate and expand their offerings to meet the evolving needs of consumers and advertisers. With the proliferation of streaming services and the fragmentation of the media landscape, there is a growing demand for aggregation and discovery tools that help viewers navigate the vast array of content available on AVOD platforms. Additionally, opportunities exist for advertisers to leverage data-driven insights and analytics to optimize their ad campaigns and improve targeting and effectiveness. Furthermore, partnerships and collaborations between AVOD platforms and content creators offer opportunities for exclusive content deals and original programming, further enhancing the value proposition for viewers and advertisers alike.
Recent Industry News
Recent industry news in the AVOD market includes partnerships, acquisitions, and content licensing agreements aimed at expanding platform reach and enhancing content offerings. Platforms are increasingly investing in original content production and licensing agreements with major studios and content creators to differentiate themselves in a competitive market. Additionally, partnerships with device manufacturers, smart TV makers, and streaming device providers help increase platform accessibility and reach new audiences. Furthermore, acquisitions of smaller AVOD players by larger media conglomerates signal ongoing consolidation and competition within the market as companies vie for market share and audience attention.
Competitive Landscape
Within the market environment, leading players are forging alliances with strategic partners to fortify their presence across diverse markets. These collaborations are pivotal in enriching their service offerings and expanding their audience reach, reflecting a commitment to innovation and growth amidst the ever-changing landscape of ad-supported video-on-demand trends.
By joining forces and pooling resources, these companies are positioning themselves as frontrunners in the global market. Strategic partnerships serve as accelerators for expansion, enabling them to establish a strong foothold in the cloud streaming market.
In July 2021, Carlyle Group finalized the acquisition of LiveU, a prominent player in live video streaming, for an estimated value of around US$ 400 million. This strategic move enhances the capabilities of the video transmission and streaming service, bolstering its competitive edge.
Similarly, in May 2021, AT&T made headlines with its landmark agreement to merge its content division, Warner Media, with Discovery, Inc. This transformative deal brings together AT&T’s renowned properties such as HBO, CNN, and Warner Bros. with Discovery Inc.’s impressive lineup of channels including TLC, Animal Planet, and the Discovery Channel.
