Global AVOD revenues to reach $56B by 2024 – report

TV watching
The U.S. has seen momentum in the AVOD space. (StockSnap/CCO)

The world is steadily embracing free, ad-supported video streaming, which will see massive growth in overall revenues during the next five years.

According to Digital TV Research, global AVOD revenues will more than double between 2018 and 2024 to reach $56 billion.

The Asia Pacific region has been a driver for AVOD growth. AVOD revenues for the region totaled $10.73 billion in 2018, accounting for 49% of the global total. Asia Pacific AVOD revenues are projected to reach $25.14 billion by 2024, but Asia Pacific’s share will fall to 45%.

Sponsored by Dell Technologies

Whitepaper: How to Elevate Your Content Delivery Workflows With Dell EMC PowerScale

Learn how Dell EMC PowerScale helps meet surging viewer demand while reducing costs with a single centralized platform for the ingest, processing, and delivery of the content your viewers love.

North American AVOD revenue totaled $6.1 billion last year and will grow to $7.7 billion this year. By 2024, North American AVOD revenues will reach $20.3 billion.

RELATED: AVOD could lead to consumers skipping MVPDs and vMVPDs alike

“China is the largest AVOD country – commanding 36% of the 2018 global total, with $7.78 billion. Similar to much of Asia, 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,” said Simon Murray, principal analyst at Digital TV Research. “However, the US will become the AVOD leader by 2023. Several large platform launches are expected in the near future in the U.S. The U.S. will more than triple its AVOD total between 2018 and 2024 to $19.23 billion – or 34% of the global total.”

The U.S. has seen momentum in the AVOD space. Competitors including Roku Channel, Xumo, Pluto TV and Tubi have all experienced fairly rapid active user growth. Amazon has begun to accelerate its AVOD strategy with international expansion for IMDb TV and NBCUniversal is planning to launch a new ad-supported streaming service next year.

Suggested Articles

Warner Bros. Pictures will release its entire 2021 film slate on HBO Max the same day they premier in theaters.

DirecTV and Dish Network are both experiencing massive channel blackouts as distribution talks with broadcasters break down.

After earlier this year testing a Watch Party feature for Hulu (No Ads) subscribers, the service is opening the option up to all its customers.