Report: AVOD Revenue to Top $66 Billion Through 2026

The rise in ad-supported VOD and free ad-supported streaming television, or FAST, is projected to grow the market segment’s revenue 144% to a combined $66 billion across 138 countries through 2026, according to new data from Digital TV Research.

The U.S. became the largest AVOD market in the world in 2019 — driven in part by ViacomCBS’s Pluto TV, Fox Entertainment’s Tubi, The Roku Channel, Redbox Live TV, Rakuten TV and Amazon-owned IMDb TV, among others. The U.S. will generate $21 billion in revenue, followed by China with $5 billion.

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Outside of the U.S., the AVOD market saw growth cool in 2020 as marketers hesitated directing advertising to streaming platforms as large population groups were quarantined in their homes watching linear TV due to government-mandated stay-at-home orders due to the pandemic.

Indeed, China saw its AVOD revenue growth decline 9% and 14% in 2019 and 2020, respectively. The country is is expected to see a return to positive growth this year.

“U.S. AVOD revenue will triple between 2020 and 2026 to $31 billion,” analyst Simon Murray said in a statement. “Rather than lose market share as other countries catch up, the U.S. will grow its share of the global total from 37% in 2020 to 47% by 2026.”

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