The brakes to advertising video-on-demand (AVOD) are now off and the sector is projected to regain its momentum and expenditure for TV shows and films from 2020 to 2026 is expected to soar by 144% says a study from Digital TV Research.
This would mean, said the analyst’s Global AVOD Forecasts report, the AVOD market across 138 countries will grow to be worth $66 billion. Of the $39 billion additional revenues generated between 2020 and 2026, the US is forecast 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.
Digital TV Research noted that 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 analyst emphasised 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.
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 corona virus 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.
Digital TV Research noted that 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 analyst emphasised 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.
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 corona virus 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.
