Advertising video-on-demand (AVOD) revenues for TV series and movies are set to reach $70 billion in 2027, up from $33 billion in 2021, says a study from Digital TV Research, with 13 of 138 countries surveyed set to generate more than $1 billion in 2027, up from only five in 2021.
In terms of territories, the Global AVOD Forecasts report forecast that the US would grow by $19 billion to $31 billion by 2027 remaining the largest country by far. Digital TV Research added that the US had the world’s most sophisticated advertising industry by some distance, plus AVOD choice was greater in the US than anywhere else. In all, the US was projected to account for 46% of the global total by 2027, up from 39% in 2021.
By contrast, second-placed China slumped in 2020 due to its economic downturn. The Global AVOD Forecasts believes that it will take until 2024 for China to better its 2019 total. One of the key dynamics has been the 2021 government clamp down on fan-based culture, which resulted in far fewer reality shows from the OTT platforms – and less viewer demand. The Chinese AVOD market is forecast to be worth $8.3 billion by 2027, growing from $6.4 billion in 2021.
The UK and Japan are set to assume third and fourth place respectively in the global AVOD market. The former is set to see revenues grow from $1.6 billion in 2021 to $3.1 billion by the end of 2026 while Japan’s growth over the same period will be from $1.5 billion to $3 billion.
By contrast, second-placed China slumped in 2020 due to its economic downturn. The Global AVOD Forecasts believes that it will take until 2024 for China to better its 2019 total. One of the key dynamics has been the 2021 government clamp down on fan-based culture, which resulted in far fewer reality shows from the OTT platforms – and less viewer demand. The Chinese AVOD market is forecast to be worth $8.3 billion by 2027, growing from $6.4 billion in 2021.
The UK and Japan are set to assume third and fourth place respectively in the global AVOD market. The former is set to see revenues grow from $1.6 billion in 2021 to $3.1 billion by the end of 2026 while Japan’s growth over the same period will be from $1.5 billion to $3 billion.
