Advertising-Based Video On Demand Market By Content Type (Movies, TV Shows, Sports, News), By Device Type (Smartphones, Tablets, Smart TVs, Laptops/Desktops), By Revenue Model (Subscription-Supported (Hybrid), Fully Advertising-Supported), By Industry Vertical (Media & Entertainment, Sports & Fitness, Education, Corporate/Enterprise), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Advertising-based Video On Demand Market was valued at USD 33.6 billion in 2023 and will surpass USD 75.7 billion by 2030; growing at a CAGR of 12.3% during 2024 - 2030.

The Advertising-Based Video On Demand (AVOD) market is a rapidly evolving sector within the broader digital streaming ecosystem, driven by the increasing demand for free and easily accessible content. As consumers continue to embrace digital platforms for entertainment, education, and other needs, AVOD services provide a unique value proposition by delivering high-quality content funded through advertisements rather than subscription fees. This model has gained traction due to its affordability for users and potential for high returns on investment for advertisers.

Movies Segment Is the Largest Owing to Universal Appeal and Expansive Library

Movies dominate the AVOD content landscape due to their universal appeal and ability to attract a wide audience base across various demographics. With classic films, blockbusters, and regionally tailored content, AVOD platforms cater to diverse preferences, ensuring consistent user engagement. Many platforms partner with film studios to offer exclusive content, driving viewership and ad revenue.

Additionally, the availability of free access to premium movie content attracts advertisers aiming to tap into a global audience. This synergy makes the movie segment not only the largest but also a critical driver of growth for AVOD platforms, offering content that users actively seek out and share.

Smart TVs Are the Fastest-Growing Device Type Owing to Enhanced Viewing Experience

Smart TVs have emerged as the fastest-growing device type within the AVOD ecosystem. The rise of affordable, internet-enabled televisions with integrated apps has revolutionized how users consume AVOD content. These devices offer a superior viewing experience with larger screens and high-definition streaming, making them a preferred choice for family and group settings.

Furthermore, the seamless integration of AVOD apps like Tubi, Pluto TV, and Amazon Freevee into Smart TV ecosystems has made it easier for users to access diverse content. Advertisers also benefit, as these devices provide higher engagement rates, enhancing the value proposition for targeted ad campaigns.

Fully Advertising-Supported Revenue Model Is the Largest Owing to Cost-Free Access

The fully advertising-supported model stands out as the largest revenue segment due to its cost-free nature, making it highly appealing to price-sensitive users. Platforms utilizing this model, such as YouTube and Pluto TV, prioritize delivering free content supported entirely by ad revenue. This approach allows them to cater to a vast audience without the barrier of subscription fees.

Advertisers are drawn to this model due to the expansive reach and diverse user base, enabling precise targeting and measurable returns. The cost-effectiveness and accessibility of fully advertising-supported platforms solidify their dominance in the AVOD revenue landscape.

Education Is the Fastest-Growing Vertical Owing to Increasing Demand for Edutainment

Education has emerged as the fastest-growing industry vertical within the AVOD market, driven by the rising demand for edutainment and accessible learning content. Platforms offering ad-supported educational videos, tutorials, and documentaries are increasingly catering to students, professionals, and lifelong learners.

The integration of AVOD into educational frameworks has been bolstered by collaborations with content creators and institutions, enabling users to access valuable resources at no cost. Advertisers in this segment also gain access to a focused and engaged audience, amplifying the potential for high ad revenue and impactful campaigns.

Asia-Pacific Is the Fastest-Growing Region Owing to Expanding Internet Penetration

Asia-Pacific is the fastest-growing region in the AVOD market, underpinned by expanding internet penetration, growing smartphone adoption, and a large, youthful population. Countries such as India, Indonesia, and China are experiencing a surge in AVOD platform subscriptions, driven by localized content offerings and affordable data plans.

The region also benefits from a diverse range of regional content, ensuring high user engagement. Advertisers increasingly focus on Asia-Pacific as a lucrative market, leveraging its vast user base to implement tailored advertising strategies and enhance campaign effectiveness.

Competitive Landscape: Innovation and Partnerships Drive Leadership

The AVOD market is marked by intense competition among leading players, including YouTube, Hulu, Roku, and Tubi. These companies continuously innovate through partnerships, exclusive content deals, and advanced ad-targeting technologies to maintain their market share.

The competitive landscape is further shaped by the entry of traditional media companies transitioning into the digital space, intensifying rivalry. With advancements in AI and machine learning, platforms are enhancing their ad personalization capabilities, ensuring a superior user experience and maximizing advertiser ROI. This evolving dynamic underscores the importance of agility and innovation in sustaining leadership within the AVOD market.

List of Leading Companies:

• Netflix (Advertising Tier)
• Hulu (Disney Streaming)
• YouTube
• Roku
• Amazon Freevee
• Peacock (NBCUniversal)
• Tubi (Fox Corporation)
• Pluto TV (Paramount Global)
• Crunchyroll (Sony Pictures)
• Vevo
• Sling TV
• Hotstar (Disney)
• Discovery+
• Dailymotion
• Redbox

Recent Developments:

• YouTube launched "Pause Ads," a new static display ad format designed for non-intrusive promotion during video pauses.
• NBCUniversal's Peacock expanded its ad capabilities, introducing personalized and interactive ad options for better viewer engagement.
• Amazon Freevee acquired exclusive streaming rights to several popular TV shows to boost its AVOD catalog and user engagement.
• Roku entered partnerships with several media networks to expand its content library for AVOD users, enhancing its global reach.
• Tubi announced its launch in multiple European countries, offering localized content and ad-supported streaming options to new markets.

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