Global AVOD expenditure expected to double | VOD | News | Rapid TV News
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A study from Digital TV Research has calculated that the advertising video-on-demand (AVOD) sector will continue on its upward path over the next five years.

DigTVres avod 2020 1June2020Indeed the analyst’s Global AVOD Forecast notes that AVOD expenditure across 138 leading markets is set to more than double between 2019 and 2025 to reach $53 billion after a dip in growth during 2020.

The analyst notes that the Covid-19 and outbreak subsequent lockdowns have hit the whole advertising sector with confidence and expenditure plummeting, thus depressing the AVOD sector which had seen good recent performance from the likes of Pluto TV and Tubi which was recently quired by media giant Fox.

Yet the study added that online advertising was the least affected medium as it is one of the youngest and fastest growing and says that online viewing has increased substantially during the lockdown to boost AVOD.

Looking at where AVOD growth was located, the study found that the US became the largest AVOD expenditure country in 2019 and is set to triple AVOD expenditure by 2025 to reach $24 billion. This would be 45% of the global total, up from a third of the whole market in 2019 and with faster growth than most other countries.

By contrast, China saw expenditure fall by 8.9% due to its economic downturn. Digital TV Research believes that the combination of the coronavirus lockdown and the continued economic downturn will see China’s AVOD falling by a further 11.4% in 2020. However, 2021 will improve.

Looking to the future, the Global AVOD Forecasts report observed that several major platforms will start soon in the US. Even though some of these platforms have plans for international expansion, Digital TV Research emphasised that these launches will typically involve not renewing existing lucrative contracts with local broadcasters and pay-TV operators. That would likely result in not all of the US-based AVOD platforms starting in all countries.