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Ad-Supported Video on Demand Market is segmented by content type that is entertainment and infotainment, food, travel and fashion, gaming and sports, and by access type that is OTT streaming devices, desktop & laptops, smartphones & tablets, smart TVs.
At present, the broadcasting industry and OTT (Over-The-Top) platforms are experiencing an increase in demand for original video content. Key players in the ad-supported video on demand market are spending millions on the production of original content to attract new audiences, as well as to retain existing viewers.
Hence, several broadcasters are trying to speed up the growth of their ad-supported video on demand services by developing new and original content to create brand awareness among the audiences.
The quality and availability of premium live content on various devices is still growing, as live video streaming is still in the nascent stage. Viewers who used to watch live sports and events on traditional TV are shifting to such platforms due to the availability of live video content as per users’ convenience.
In addition, the number of live events or sports deals are increasing due to increasing demand for video on demand content. Thus, due to the rising demand from audiences for live and original streaming content, the ad-supported video on demand market size is expected to expand at a significant rate over the forecast period of 2020 to 2030.
Advancements in Video Formats & Devices to Create New Opportunities for Operators: For home videos, UHD or 4K video on demand content is becoming mainstream, and this trend is likely to increase with an increase in the availability of smartphones and tablets that support these formats.
A lot of mobile video content is still delivered in non-HD resolutions, but demand for 4K content can be as much as 2-4 times greater than HD; hence, its potential impact on networks is great.
Thus, with demand for increased bandwidth, streaming of higher resolution videos presents an opportunity for operators, as they can leverage their network expertise to provide a superior quality of service by moving toward more advanced 4G networks.
Hence, improvements in the quality of video formats is likely to boost opportunities for increasing the subscriptions of ad-supported video on demand (AVOD).
Rising Subscriber Base Due to High-Speed Internet Services Fuelling Market Growth: The launch of 5G networks in many developed countries across various circles is expected to improve the video streaming experience of users.
Continuous developments in Internet services is expected to fuel market growth. It is expected that, research on 6G and 7G services in Japan will provide access to networks with ultra-high speeds. This is expected to support the widespread adoption of video on demand services in the near future.
Moreover, as the speed of video streaming in developed countries is high, the average session length of video data usage tends to be longer as compared to other regions.
In terms of value, East Asia accounted for the largest ad-supported video on demand market share in 2019, owing to increased growth of video streaming on smartphones in the region.
Moreover, South Asia and Pacific and East Asia combined are anticipated to hold almost 50% of the global ad-supported video on demand market share in 2020. Furthermore, the AVOD market in Europe is expected to grow at a significant rate, due to increasing Internet penetration and rise in demand for video on demand services to provide training and education through satellite connectivity.
Among all subscription-based services, ad-supported video on demand has become more popular among cash-strapped consumers affected by rising unemployment brought on by the coronavirus pandemic.
Streaming consumption across different options is up more than 70% as compared to last year, accelerated by the COVID-19 outbreak. Lockdowns have altered everyone’s daily routine, forcing people to search for new and engaging ways to pass time.
As such, video on demand services have been positively affected by the COVID-19 pandemic outbreak, more so due to bans imposed on public gatherings. This has led a large number of viewers to shift to video streaming services for media and entertainment.
Thus, increasing number of viewers are preferring platforms such as ad-supported video on demand, subscription video on demand, and transaction video on demand, to watch movies and TV shows. This change in consumer preference is propelling the growth of the ad-supported video on demand market at a significant rate.
A comprehensive view of the ad-supported video on demand market has led our analysts to conclude that, the market is escalating at a significant rate. The smart TVs sub-segment holds a major share of the market. However, the smartphones and tablets streaming devices sub-segment is expanding at a significant rate and is expected to dominate the ad-supported video on demand market by 2030. Various ad-supported video on demand platforms are signing deals with other media companies to expand their content library and cater to audiences around the world. Thus, partnerships & collaborations with other AVOD platforms and media companies are some strategies being opted for by key players to fuel their sales growth.
PMR’s research study on the global ad-supported video on demand market offers a detailed market taxonomy, wherein, key segments have been discussed in detail. The segmentation of the ad-supported video on demand market has been offered on the basis of content, streaming device, and region. Every segment has been analyzed in detail, and data pertaining to the growth of each segment has been included in the study.
The research study on the ad-supported video on demand market offers inclusive insights about the growth of the market in the most comprehensible manner for the better understanding of users. Insights offered in the ad-supported video on demand market report answer some of the most salient questions that assist stakeholders in gauging all the emerging possibilities.