Global AVoD spend to double by 2025
Worldwide AVoD expenditure is predicted to more than double by 2025 to reach US$53bn, according to the latest figures from Digital TV Research.
The UK-based industry analyst’s Global AVoD Forecast report found the sector is set to continue on its upward trajectory across 138 markets worldwide, despite a dip in growth forecast for 2020 as a result of the coronavirus pandemic.
The report revealed that online advertising was the least impacted medium because it is one of the youngest and fastest growing within the sector, and has enjoyed increased viewing figures during the Covid-19 lockdown.
The US saw the highest AVoD spend in 2019, at US$8bn. Digital TV Research found the country’s AVoD expenditure is set to triple over the next five years to US$24bn, accounting for 45% of the global total, up from 33% in 2019.
China is the country with the second highest global expenditure in the sector, despite a 8.9% drop in spending in 2019. A combination of the coronavirus lockdown and continued economic downturn will see China’s AVoD expenditure fall by a further 11.4% in 2020, with figures predicted to begin improving by 2021.
Simon Murray, principal analyst at Digital TV Research, said: “Global AVoD growth will dip during 2020 but it is not expected to fall. The coronavirus and subsequent lockdowns hit the whole advertising sector as confidence and expenditure plummeted.
“However, online viewing has increased substantially during the lockdown to boost AVoD. We expect high AVoD growth to return globally from 2021.”
The AVoD sector has seen plenty of activity in recent months, with new services being launched by the likes of Pops Worldwide in Asia https://www.c21media.net/pops-launches-avod-app-in-thailand/ with Vudu acquired by NBCUniversal, Fox buying Tubi and ViacomCBS buying Pluto TV.