April 12, 2024

Dynamic Application Security Testing Market is in trends by increasing digitalization in BFSI sector

The shift towards digital media consumption has accelerated the growth of the Ad-Supported Video-on-Demand (AVOD) services market globally. AVOD services allow users to stream video content for free in exchange for watching advertisements. These services offer a variety of movies, TV shows, and original programs across different genres. The increasing demand for affordable and flexible digital entertainment options have driven more users towards AVOD platforms.

The Global AVOD Market is estimated to be valued at US$ 28.09 Billion in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030.

AVOD services provide video content providers an alternative monetization strategy compared to subscription-based video-on-demand. Major platforms such as YouTube, Hulu, and Pluto TV have seen significant growth in user base as well as viewing hours as people now consume a larger portion of their entertainment digitally.

Key Takeaways
Key players operating in the AVOD services market are 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). Major platforms continue expanding their content libraries as well as global footprint.

The demand for AVOD services is growing exponentially with increase in mobile and streaming device penetration. Users, especially millennials, prefer the flexibility of on-demand viewing on various internet-connected devices without any subscription commitment. The wide availability of affordable smartphones and high-speed internet access is driving the usage of AVOD platforms.

Global media and tech giants are further investing to expand the reach of their AVOD offerings worldwide. Companies are focused on customizing content as per local tastes and securing international licensing rights. The global AVOD market is set to attract greater mainstream audiences and turn highly lucrative with advancement of streaming industry.

Market Key Trends
The shift to mobile viewing is a major trend in the AVOD market. Platforms are optimizing user experience and interface for smartphones to make content easily accessible on-the-go. Short-form and bite-sized video formats are gaining popularity on mobile AVOD apps to better engage millennial audiences. Personalized recommendation engines based on viewing history and social connections are also being improved to boost viewer loyalty and time spent. This will propel further monetization possibilities for AVOD services from ad integration.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the AVOD market requires significant investments to acquire content library and build platforms. However, the market is growing rapidly giving opportunities to new players.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of many options and switching between platforms is very easy for viewers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as top media companies supply must-have content to platforms but platforms can source content from various independent producers and user generated content.
Threat of new substitutes: The threat of new substitutes is high as players are continuously innovating newer digital business models and alternative means of distributing content.
Competitive rivalry: The competition in the market is intense given aggressive strategies adopted by top platforms to acquire subscribers and viewership.

Geographical Regions: North America accounts for the largest share of the AVOD services market currently in terms of value as major tech companies are based in US and Canada and they have established strong distribution of services.

Asia Pacific region is the fastest growing geographical segment for AVOD services market. Countries like India and China have very high smartphone and internet penetration leading to increasing consumption of OTT video content on mobile devices and embracement of digital platforms. Rising incomes are also increasing the spending ability of consumers on digital entertainment in several Asia Pacific countries.

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  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it