Yes, ad-supported video-on-demand is a thing.
Digital TV Research said global revenue from AVOD distribution will nearly triple from $21.9 billion in 2018 to around $56 billion by 2024.
Global AVOD revenue will reach more than $26.7 billion this year, the research company said, with the Asia-Pacific region having the highest concentration at $13.2 billion.
North American AVOD revenue will grow from $6.1 billion in 2018 to nearly $7.7 billion this year, the report said. By 2024, North American AVOD platforms will be generating $20.3 billion.
In the U.S., ad-supported OTT distribution platforms, including Roku Channel, Pluto TV, Amazon Free Dive, Vudu Movies on Us, Tubi and Xumo have attracted more attention in recent months, although their revenue still isn’t on par with SVOD services
Notably, Digital TV Research said in November that SVOD platforms generated just over $35 billion in 2018. North American SVOD platforms generated $16.7 billion last year, the company added.
“The U.S. will become the AVOD leader by 2023,” said Simon Murray, principal analyst at Digital TV Research. “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.”