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 Over-The-Top (OTT) platforms are witnessing a surge in demand for original video content. Key players in the ad-supported video on demand (AVOD) market are investing substantial amounts in the production of original content to attract new viewers and retain existing ones. This trend is prompting several broadcasters to accelerate the growth of their AVOD services by developing unique and original content to enhance brand awareness among audiences.

Growth of Premium Live Content

The quality and availability of premium live content on various devices continue to improve, although live video streaming is still in its early stages. Viewers who traditionally watched live sports and events on television are shifting to OTT platforms due to the convenience of accessing live video content. The increasing number of live events and sports deals is a direct response to the rising demand for video on demand content. This shift in viewing habits is expected to drive significant growth in the AVOD market over the forecast period.

Advancements in Video Formats and Devices

For home videos, Ultra High Definition (UHD) or 4K video on demand content is becoming mainstream. This trend is likely to grow with the increasing availability of smartphones and tablets that support these formats. Although much mobile video content is still delivered in non-HD resolutions, the demand for 4K content can be two to four times greater than HD. Consequently, the potential impact on networks is substantial. Streaming higher resolution videos requires increased bandwidth, presenting an opportunity for operators to leverage their network expertise and provide superior service by transitioning to more advanced 4G networks. Improvements in video formats are likely to boost subscriptions for AVOD services.

Impact of High-Speed Internet on Market Growth

The launch of 5G networks in many developed countries is expected to enhance the video streaming experience for users. Continuous advancements in Internet services are anticipated to fuel market growth. Research on future technologies, such as 6G and 7G, particularly in countries like Japan, aims to provide ultra-high-speed network access. This development is expected to support the widespread adoption of video on demand services. In regions with high-speed Internet, the average session length of video data usage is longer, further driving the demand for AVOD services.

Regional Market Dynamics

East Asia held the largest market share in the AVOD market, attributed to the rapid growth of video streaming on smartphones in the region. South Asia and Pacific, along with East Asia, are anticipated to collectively hold nearly half of the global market share. In Europe, the AVOD market is expected to grow significantly due to increasing Internet penetration and the rising demand for video on demand services for purposes such as training and education through satellite connectivity.

Impact of the COVID-19 Pandemic

The COVID-19 pandemic has significantly impacted the AVOD market. Ad-supported video on demand services have become more popular among consumers facing financial constraints due to rising unemployment. Streaming consumption has surged, driven by the lockdowns that altered daily routines and increased the search for engaging ways to pass time. With public gatherings restricted, many viewers have turned to video streaming services for media and entertainment, positively affecting the AVOD market. This shift in consumer preference has propelled the growth of AVOD services.

Increasing Popularity of AVOD Platforms

The popularity of AVOD platforms has risen as viewers seek alternatives to subscription-based services. For instance, Amazon.com, Inc. reported a substantial increase in its monthly AVOD streaming audience within a few months. This trend highlights the competitive Analysis, with players like Amazon, Pluto TV, Hulu, and Tubi vying for a share of the growing AVOD market.

Analysts' Perspective on Market Trends

Analysts conclude that the AVOD market is escalating at a significant rate. While the smart TVs sub-segment holds a major market share, streaming on smartphones and tablets is expanding rapidly and is expected to dominate the market in the future. Various AVOD platforms are forming partnerships and collaborations with other media companies to expand their content libraries and reach global audiences. These strategies are essential for key players to drive 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.

Market Segmentation

The global AVOD market is segmented based on content, streaming device, and region.

Content Segmentation

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

Streaming Device Segmentation

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

Regional Segmentation

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

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