AVOD SERVICES WILL SPIKE BY 144% IN A SPAN OF SIX YEARS

A recent Digital TV Research report, AVOD spending for TV episodes and movies will spike by 144% in a span of six years, between 2020 and 2026 to reach US$66 billion across 138 countries. “US AVOD revenues will triple between 2020 and 2026 to US$31 billion,” Simon Murray, Principal Analyst at Digital TV Research, said. “Rather than lose market share as other countries catch up, the US will grow its share of the global total from 37% in 2020 to 47% by 2026.”  

The US will contribute US$21 billion of the total US$39 billion growth. The UK’s AVOD business will almost double to US$3.44 billion, while spending in India will triple to more than US$2.25 billion. China’s AVOD business will increase by US$5 billion, with the Covid-19 pandemic severely impacting the sector to a reduction of 14% in 2020. China will not better its 2018 total until 2024, although growth will return from 2021.

As opposed to losing market share as other countries catch up, the US will grow its share of the global total from 37% in 2020 to 47% by 2026. The analyst emphasized that The US has both the most developed OTT sector in the world and the most developed advertising market and that successful AVOD platform launches in the US - such as Tubi pictured - will not necessarily thrive elsewhere. Of the $39 billion additional revenues generated between 2020 and 2026, the US is forecast to contribute $21 billion and China $5 billion. Revenues will triple in India and the US where AVOD revenues are set to reach triple between 2020 and 2026 to $31 billion. The UK AVOD sector is set to almost double in value between 2020 and 2026 to total $3.44 billion. 

The Global AVOD Forecasts report also pointed out that the US became the largest AVOD country in 2019 as China saw expenditure fall by 9% due to its economic downturn. A combination of the coronavirus lockdown and the continued economic downturn led to China’s AVOD dropping by a further 14% in 2020 and the study calculates that the country will not better its 2018 total until 2024, although growth will return from 2021.