by The global AVOD Services Market is estimated to be valued at US$28.09 billion in 2023 and is expected to exhibit a CAGR of 14.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
AVOD services refer to advertising-supported video-on-demand platforms that offer free streaming content to users. These services allow users to access a wide range of movies, TV shows, and other video content without a subscription fee. The popularity of AVOD services is driven by the rising consumer preference for free streaming options and the availability of a vast library of content. The need for affordable entertainment options and the convenience of accessing content on multiple devices also contribute to the market growth.
Market Key Trends:
One key trend in the AVOD Services Market is the increasing adoption of original content creation by AVOD platforms. As competition in the streaming industry intensifies, AVOD providers are focusing on creating their own exclusive content to attract and retain users. By offering unique and engaging content, AVOD services can differentiate themselves from competitors and enhance user engagement. This trend is also driven by the increased demand for personalized and curated content experiences. AVOD platforms that invest in original content are likely to gain a competitive edge in the market.
Porter’s Analysis
Threat of New Entrants:
The AVOD Services Market is expected to face a moderate threat of new entrants. Although the barrier to entry is relatively low, established players such as YouTube (Google), Hulu (Disney), and Peacock (NBCUniversal) hold significant market share and have strong brand recognition. Additionally, these companies have access to large user bases and possess the financial resources to invest in content creation and technology enhancements.
Bargaining Power of Buyers:
The bargaining power of buyers in the AVOD Services Market is moderate. With a wide range of options available to consumers, they have the ability to switch between platforms easily. However, the market is dominated by a few key players, giving them some leverage in negotiating content licensing deals. Buyers also have the power to demand high-quality and diverse content to meet their preferences and demands.
Bargaining Power of Suppliers:
The bargaining power of suppliers in the AVOD Services Market is relatively low. Content suppliers such as production studios and independent creators rely on platforms like YouTube and Hulu to reach a large audience and generate revenue. These platforms have the leverage to negotiate favorable licensing terms and exert control over the availability and pricing of content.
Threat of New Substitutes:
The threat of new substitutes in the AVOD Services Market is moderate. While traditional TV and cable subscription services continue to exist, the rise of AVOD platforms has provided consumers with alternative options for accessing video content. The convenience, affordability, and customization options offered by AVOD services make them a viable substitute for traditional media consumption.
Competitive Rivalry:
The competitive rivalry in the AVOD Services Market is high. The market is characterized by intense competition among key players such as YouTube, Hulu, Peacock, and Tubi. These companies are continuously innovating, expanding their content libraries, and investing in technology to attract and retain users. This intense competition drives constant improvement in content quality, user experience, and pricing strategies.
Key Takeaways
The global AVOD Services Market is expected to witness high growth, exhibiting a CAGR of 14.2% over the forecast period (2023-2030). This growth can be attributed to increasing internet penetration, the rise of smartphones and smart TVs, and the growing demand for on-demand video content.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the AVOD Services Market. The region has a high level of internet penetration, a large digital infrastructure, and a significant number of key players based in the United States. Additionally, the region has a well-established consumer base that is accustomed to streaming services.
Key players operating in the AVOD Services Market include 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), and Tubi TV (Fox Corporation). These companies have a significant market share and continue to innovate and expand their offerings to stay competitive in the market.
