The global 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.
Market Overview:
AVOD (Advertising Video on Demand) services refer to streaming platforms that offer video content to viewers for free, supported by advertisements. These services have gained significant popularity due to their cost-effective nature and the ability to provide a wide range of content to users. The AVOD model allows advertisers to reach a large audience and target them with relevant advertisements, making it an attractive option for businesses. Moreover, the demand for free video content among consumers has driven the growth of AVOD services in the market.
Market Key Trends:
One key trend in the AVOD Services market is the increasing adoption of personalized advertising. With the help of advanced data analytics and machine learning algorithms, AVOD platforms are able to collect user data and present targeted advertisements to viewers. This personalized advertising approach enhances user engagement and improves the effectiveness of ad campaigns. Additionally, AVOD services are leveraging programmatic advertising, which allows for real-time bidding and optimization of ad placements. These advancements in advertising technology are expected to enhance the revenue potential of AVOD services and attract more advertisers to the platform.
Porter’s Analysis:
Threat of new entrants: The AVOD Services market is highly lucrative, which makes it an attractive industry for new entrants. However, the market is already dominated by key players such as YouTube, Hulu, and Peacock, who have a strong brand presence and established user base. Additionally, the high costs associated with content production and licensing create significant barriers to entry.
Bargaining power of buyers: The bargaining power of buyers in the AVOD Services market is moderate. While there are a wide variety of platforms available for consumers to choose from, the switching costs are relatively low. However, the availability of high-quality and exclusive content on certain platforms gives them an advantage, allowing them to negotiate favorable deals with content creators and distributors.
Bargaining power of suppliers: The bargaining power of suppliers in the AVOD Services market is relatively high. Content creators and distributors hold a significant amount of power as they provide the content that drives user engagement and subscription rates. Key players such as YouTube and Hulu have the advantage of being able to attract a large number of viewers, which gives them leverage in negotiating favorable deals with content suppliers.
Threat of new substitutes: The threat of new substitutes in the AVOD Services market is low. Traditional television and cable services continue to face competition from online streaming platforms, but the convenience and customization offered by AVOD services make them highly appealing to consumers. The availability of a wide range of content genres and personalized recommendations further reduces the likelihood of consumers switching to alternative entertainment options.
Competitive rivalry: The competitive rivalry in the AVOD Services market is intense. Key players constantly innovate and invest in original content to attract and retain viewers. YouTube, Hulu, and Peacock are among the leading platforms with a strong market share. However, the market also witnesses the presence of several smaller players such as Tubi, Pluto TV, and IMDb TV, who offer niche content to cater to specific target audiences.
Key Takeaways:
The Global AVOD Services Market Size is expected to witness significant growth, exhibiting a CAGR of 14.2% over the forecast period of 2023-2030. This growth can be attributed to the increasing demand for digital entertainment and the adoption of streaming services by a growing number of consumers worldwide. The convenience, affordability, and personalized content offerings of AVOD services drive their popularity.
From a regional perspective, North America is expected to be the fastest-growing and dominating region in the AVOD Services market. This can be attributed to the high penetration rate of smartphones, widespread availability of high-speed internet, and a large consumer base with a preference for digital content. Furthermore, key players such as YouTube, Hulu, and Peacock have a strong presence in the region, contributing to its dominance.
Key players operating 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 key players have established themselves in the market and continue to invest in original content to attract and retain viewers.
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