AVOD Revenues to Double

Global AVOD expenditure will reach $53 billion in 2025, more than double the amount recorded in 2019, according to Digital TV Research.

Last year, the U.S. topped China as the world’s largest AVOD market, with an economic downturn leading to a 9 percent reduction in the key Asian OTT market. The COVID-19 shutdown and further economic problems will see the Chinese AVOD market contract again this year, with expenditure expected to fall by 11.4 percent in 2020.

In 2025, the U.S. will generate $24.2 billion in AVOD revenues, followed by China at $9.2 billion, Japan at $3.2 billion, the U.K. at $2.8 billion and India at $1.7 billion.

“We expect high AVOD growth to return globally from 2021,” said Simon Murray, principal analyst at Digital TV Research. “The U.S. will triple its AVOD expenditure by 2025 to reach $24 billion. This is 45 percent of the global total—up from a 33 percent share in 2019. This is faster growth than most other countries.”

Murray continued: “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 advertising is the least affected medium as it is one of the youngest and fastest-growing. Online viewing has increased substantially during the lockdown to boost AVOD.”