The global Ad-Supported Video on Demand (AVOD) market is projected to achieve a valuation of US$ 40.12 billion by 2024, with expectations of expanding at a robust CAGR of 14.2% from 2024 to 2034. Over-the-top (OTT) platforms have transformed the landscape of content consumption by enabling users to stream media online, bypassing conventional cable and satellite subscriptions. Services like Netflix, Amazon Prime Video, and Disney+ have capitalized on this shift, experiencing substantial growth in their subscriber bases due to the convenience and flexibility they offer.

Along with the rise of subscription-based models, there is a significant number of users who prefer free content, though these are supported by ads. Ad-supported video-on-demand platforms cater to this segment by providing a vast array of movies, TV series, and other content at no cost to the viewer. This model resonates particularly well with cost-conscious consumers who seek quality entertainment without having to bear the financial burden of subscriptions.

The appeal of ad-supported video on demand goes beyond just cost savings for customers. These platforms have extensive libraries of content, including both licensed and original productions, ensuring there's something for everyone. Moreover, the ad-supported model enables advertisers to target their audience more effectively, leading to more relevant and engaging advertisements.

Key Takeaways from the Market Study

The ad-supported video-on-demand (AVOD) market is poised for substantial growth, with projections indicating a robust CAGR of 14.2% up to 2034. In 2024, global sales of ad-supported streaming services are expected to reach US$ 40.12 billion, driven by the increasing consumer preference for free, ad-supported content accessible through platforms like Pluto TV, Tubi, and Peacock. This growth trajectory is forecasted to continue, with the market anticipated to expand significantly to US$ 150.8 billion by the end of 2034. North America is projected to maintain a strong presence in the AVOD market, growing at a CAGR of 13.3% over the same period, fueled by widespread adoption and technological advancements in streaming services.

Regionally, East Asia is expected to emerge as a dominant force in the AVOD market, capturing a substantial 38.4% share by 2034. This growth is underpinned by the region's large population, increasing internet penetration, and rising disposable incomes, which contribute to greater consumption of digital content. Additionally, specific sectors like travel and tourism are set to play a pivotal role, accounting for a significant 33.3% market share in 2024 as platforms leverage targeted advertising to reach consumers interested in travel-related content. As the AVOD landscape evolves with technological innovations and changing consumer preferences, the market is positioned for dynamic expansion across diverse geographic regions and industry segments in the coming decade.

List of Key Companies Profiled in The Report

  • YouTube
  • Apple Inc.
  • Cisco Systems, Inc.
  • VUDU Inc.
  • IndieFlix
  • HBO Home Entertainment Inc.
  • Compact Corp.
  • Others

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.