AVOD Market Size & Share 2024 - 2032
Market Size by Content (Movies, TV Shows, Original Series, News, Sports, User-generated Content), by Platform (Standalone Platforms, Broader Streaming Platforms, Social Media Platforms), by Device, by Format, by Genre & Forecast.
Report ID: GMI10051
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Published Date: June 2024
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
AVOD Market Size
AVOD Market size was valued at USD 40.8 billion in 2023 and is estimated to register a CAGR of over 8% between 2024 and 2032. The rising trend of Ad-supported Video on Demand (AVOD) reflects a fundamental shift in the way consumers engage with digital content.
AVOD Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
For instance, in January 2024, Amazon Prime Video captured this trend by integrating advertisements. This marked Amazon's entry into the AVOD space, strategically including ads in movies and TV shows with minimal interruptions, contrasting traditional TV and other streaming services. Subscribers can opt for an ad-free experience for an additional USD 2.99 per month, aligning with common AVOD strategies to increase revenue while enhancing user experience.
AVOD platforms offer viewers convenient, free access to a diverse array of content, which is enabled by widespread internet availability and the proliferation of smart devices. This accessibility has attracted a sizable and engaged audience, creating opportunities for advertisers to reach consumers in a targeted and measurable manner. Advancements in ad tech and data analytics further fortify this growth, allowing platforms to incorporate personalize ad experiences based on user data such as viewing preferences and demographics.
As the AVOD market expands, media platforms are increasingly exploring hybrid models that blend ad-supported content with premium subscription options. This approach not only caters to diverse viewer preferences but also maximizes revenue streams, underscoring AVOD's pivotal role in reshaping digital entertainment consumption and advertising dynamics.
The AVOD market faces a major challenge in balancing user experience (UX) with ad monetization. Too many ads/poorly targeted ads can lead to viewer dissatisfaction and increased ad-blocking behaviour, undermining revenue potential. Additionally, ensuring ad relevancy and non-intrusiveness is crucial to maintaining viewer engagement and retention.
Furthermore, regulatory challenges around data privacy and advertising standards pose significant risks. Adhering to stringent privacy laws and ensuring transparent data handling practices are essential for building trust with viewers and maintaining compliance with evolving regulations.
For instance, in November 2023, YouTube and Meta faced criminal charges in Ireland for unlawful data collection practices related to ad-blocker tracking and behavioural ad targeting. The complaint accused the companies of violating EU citizens' privacy rights by using tracking scripts without user consent. This legal action highlighted the increasing scrutiny of data collection practices in the EU and could have significant implications on the way companies handle ad blockers and data collection methods in the future.
AVOD Market Trends
Ad tech advancements are revolutionizing the landscape of AVOD platforms by introducing sophisticated tools such as AI and Machine Learning (ML). These technologies significantly enhance ad targeting capabilities, allowing platforms to deliver more personalized and relevant advertisements based on user behaviour and preferences. This not only improves the UX by reducing irrelevant ads but also boosts ad effectiveness and engagement. Moreover, innovations in interactive ad formats further increase viewer interaction and retention, making AVOD platforms more attractive to advertisers seeking measurable ROI.
For instance, from Q1 of 2024, Netflix introduced AVOD strategy including "binge ad" formats. These ads are tailored for viewers engaged in extended streaming sessions, offering non-intrusive and relevant advertisements. This initiative aims to enhance viewer experience while providing advertisers with a direct avenue to reach highly engaged audiences. By focusing on seamless integration and contextual relevance, Netflix seeks to leverage these innovative ad formats to effectively monetize its platform and maintain subscriber satisfaction in the competitive streaming landscape.
Simultaneously, AVOD platforms are diversifying their monetization strategies through hybrid models that blend ad-supported content with premium subscription offerings. This approach caters to diverse viewer preferences, ranging from viewers preferring free content supported by ads to subscribers seeking an ad-free experience/exclusive premium content. By diversifying revenue streams, platforms can achieve greater financial stability and flexibility in content investments.
Investing in original content and securing exclusive rights also play a pivotal role in attracting and retaining viewers, as unique and compelling content becomes a crucial factor in the competitive streaming landscape. These strategies highlight the dynamic evolution of AVOD platforms as they adapt to changing consumer behaviours and technological advancements in the digital video ecosystem.
AVOD Market Analysis
Based on platform, the market is divided into standalone platforms, broader streaming platforms and social media platforms. The standalone platforms segment is projected to exceed USD 30 billion by 2032. It holds a leading position in the market due to its specialized content offerings and focus on UX. Unlike broader streaming platforms or social media platforms that encompass various types of content and functionalities, standalone platforms concentrate solely on delivering specific genres or types of videos. This targeted approach not only attracts audiences with specific preferences but also allows for more precise ad targeting and higher viewer engagement.
Based on device type, the AVOD market is categorized into mobile devices, smart TVs, desktop & laptops, streaming devices and others. The smart TVs segment held a major market share of around 28% in 2023. As of 2023, smart TVs dominated the market, owing to their integration of streaming services and internet connectivity, offering consumers direct access to a wide range of content without the need for additional devices.
Advancements in display technology, such as 4K resolution, HDR, and OLED/QLED panels, offer superior picture quality with vivid colors, deeper blacks, and sharper images. This has made smart TVs increasingly popular among consumers seeking a seamless and high-quality home entertainment solution.
North America dominated the global AVOD market with a share of over 38% in 2023. Firstly, the region benefits from a highly developed digital infrastructure and widespread internet access, which facilitate the seamless adoption of streaming platforms offering free, ad-supported content.
Secondly, North America is home to influential media conglomerates and tech giants, such as Hulu and Roku, and major studios that have invested heavily in AVOD platforms. These entities leverage their rich content offerings, technological capabilities, and established brand recognition to attract both viewers and advertisers. Lastly, the region's sophisticated advertising ecosystem allows for precise audience targeting and effective monetization strategies, ensuring that AVOD services in North America remain competitive and financially sustainable.
Asia Pacific AVOD market is emerging, fuelled by rapid digital adoption across diverse markets such as China, India, and Southeast Asia. Platforms, such as iQIYI and Youku, in China and Hotstar in India, have capitalized on the region's vast population and growing internet penetration to offer extensive libraries of localized content supported by targeted advertising.
In Europe, companies such as ITV Hub in the UK and RTL Group's streaming services across various European markets leverage their strong brand presence and content offerings to attract viewers seeking free, ad-supported entertainment. The region's regulatory frameworks also support a competitive AVOD landscape, fostering innovations in ad-tech and user engagement strategies. With increasing consumer preference for on-demand content and cross-platform viewing, Europe continues to shape AVOD trends with a focus on localized content and targeted advertising solutions.
AVOD Market Share
Youtube and Tubi hold a significant market share of over 75% in the AVOD industry. YouTube has a global user base, diverse content including user-generated and premium content such as YouTube Originals, and partnerships with major studios. Its sophisticated algorithms for content recommendations and targeted advertising attract advertisers seeking precise audience engagement. Tubi attracts viewers with its extensive library of movies and shows and strategic content partnerships. These platforms' focus on content quality, technological innovation, and strategic alliances solidify its leadership in the market.
AVOD Market Companies
Major players operating in the AVOD industry are:
AVOD Industry News
The AVOD market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:
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Market, By Content
Market, By Platform
Market, By Device
Market, By Format
Market, By Genre
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
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GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
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Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →