June 27, 2019
Ad-supported video-on-demand, the free streaming video alternative to subscription VOD, continues to gain momentum.
New data from Digital TV Research projects AVOD revenue will more than double between 2018 and 2024 topping $56 billion across 138 countries — including notably in the United States. Online TV and video advertising has been considerably boosted in recent years by the rapid growth in mobile advertising, according to DTR.
While AVOD penetration in the Asia Pacific region is well-established, topping $10.73 billion in 2018 with 49% of the global marketshare, the rest of the world is catching up. Despite more than doubling to $25.14 billion by 2024, Asia Pacific’s marketshare will fall to 45%.
From the $34.42 billion additional revenue to be generated between 2018 and 2024, Asia Pacific will contribute $14.41 billion and North America $14.20 billion. All of the other regions will at least double their totals.
“China is the largest AVOD country — commanding 36% of the 2018 global total, with $7.78 billion,” Simon Murray, principal analyst at Digital TV Research, said in a statement. “Most OTT viewing in China is on mobile phones to AVOD-supported platforms. China will still generate 29% of the global total by 2024 with $16.60 billion.”
Murray said the U.S. will become the AVOD leader by 2023.
Indeed, several large platform domestic launches (i.e. NBC Universal, Sony Crackle) are expected in the near future, in addition to San Francisco-based Tubi TV, which bowed in 2014 with more than 9,000 movies and television shows, Amazon’s IMDb TV (formerly IMDb Freedive) and The Roku Channel, among others.
“The U.S. will more than triple its AVOD revenue total between 2018 and 2024 to $19.23 billion — or 34% of the global total,” Murray said.