Ad-Supported Video on Demand Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

Ad-Supported Video on Demand Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

The broadcasting industry and OTT (Over-The-Top) platforms are witnessing a surge in demand for original video content. Major players in the ad-supported video on demand (AVOD) market are heavily investing in the production of original content to attract new audiences and retain existing viewers. Broadcasters are accelerating the growth of their AVOD services by developing new and original content, aiming to create strong brand awareness among their audiences.

As the availability and quality of premium live content on various devices continue to grow, live video streaming remains in its early stages. Viewers who traditionally watched live sports and events on television are now shifting to these platforms, attracted by the convenience of live video content. The increasing number of live events and sports deals reflects the growing demand for video on demand content. Consequently, the AVOD market is expected to expand significantly over the coming years.

Ad-Supported Video on Demand Market Trends

Advancements in Video Formats & Devices

For home videos, UHD or 4K video on demand content is becoming mainstream. This trend is likely to increase with the growing availability of smartphones and tablets that support these formats. Although a substantial portion of mobile video content is still delivered in non-HD resolutions, the demand for 4K content can be two to four times greater than HD, which has a significant potential impact on networks.

The demand for increased bandwidth and streaming higher resolution videos presents an opportunity for operators. By leveraging their network expertise, operators can provide superior quality services by transitioning to more advanced 4G networks. Hence, improvements in video formats are likely to boost opportunities for increasing subscriptions to AVOD services.

Rising Subscriber Base Due to High-Speed Internet Services

The introduction of 5G networks in many developed countries is expected to enhance users' video streaming experiences. Continuous developments in Internet services are expected to drive market growth. Research on future 6G and 7G services in Japan is anticipated to provide access to ultra-high-speed networks, supporting the widespread adoption of video on demand services.

Moreover, high video streaming speeds in developed countries result in longer average session lengths for video data usage compared to other regions. This trend is expected to fuel the growth of the AVOD market.

Regional Outlook of Ad-Supported Video on Demand Market

In terms of value, East Asia accounted for the largest share of the AVOD market, driven by the increased growth of video streaming on smartphones in the region. Combined, South Asia and the Pacific and East Asia are expected to hold a significant share of the global AVOD market. Furthermore, the AVOD market in Europe is anticipated to grow at a significant rate, due to increasing Internet penetration and the rising demand for video on demand services for training and education through satellite connectivity.

Impact of COVID-19 Pandemic on the Ad-Supported Video on Demand Market

Among all subscription-based services, ad-supported video on demand has gained popularity among consumers affected by rising unemployment due to the coronavirus pandemic. Streaming consumption across different options has increased significantly compared to the previous year, accelerated by the COVID-19 outbreak. Lockdowns have altered daily routines, leading people to seek new and engaging ways to pass the time.

Video on demand services have benefited from the COVID-19 pandemic, especially due to bans on public gatherings. This shift has led a large number of viewers to turn to video streaming services for media and entertainment. As a result, platforms such as AVOD, subscription video on demand, and transaction video on demand have seen an increase in viewership, propelling the growth of the AVOD market.

For instance, in mid-2020, Amazon.com, Inc. reported that its monthly AVOD streaming audience doubled within six months. Amazon is competing with other ad-supported OTT services such as Pluto TV, Hulu, Tubi, and others for a share of the booming AVOD market.

Analysts’ Viewpoint

A comprehensive view of the AVOD market reveals significant growth potential. The smart TVs sub-segment holds a major share of the market. However, the smartphones and tablets streaming devices sub-segment is expanding rapidly and is expected to dominate the AVOD market in the future. Various AVOD platforms are entering partnerships and collaborations with other media companies to expand their content libraries and cater to global audiences. These strategies are helping key players fuel their sales growth.

Competitive Analysis

Key companies in the AVOD market include:
• Tubi, Inc.
• Muvi LLC
• PopcornFlix
• Hulu
• Roku
• Amazon.com, Inc.
• iQIYI
• Disney+ Hotstar
• MX Player
• Youku Tudou Inc.

Ad-Supported Video on Demand Market: Segmentation

Fairfield Market Research’s research study on the global AVOD market offers a detailed market taxonomy, discussing key segments in detail. The segmentation of the AVOD market is offered based on content, streaming device, and region. Each segment has been analyzed in detail, and data pertaining to their growth has been included in the study.

Content
• Media & Entertainment
• Travel & Tourism
• Sports
• Others

Streaming Device
• Smart TVs
• Laptops & Desktops
• Smartphones & Tablets
• Other OTT Devices

Region
• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East and Africa

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