AVOD expenditure for TV episodes and movies is forecast to climb by 144 percent between 2020 and 2026 to reach $66 billion across 138 countries, according to Digital TV Research.
AVOD growth slipped to 9.2 percent in 2020, but high growth will resume from 2021, the firm projects.
From the $39 billion additional revenues generated between 2020 and 2026, the U.S. will contribute $21 billion and China $5 billion. Revenues will triple in India and the U.S. The U.S. became the largest AVOD country in 2019, as China saw expenditure down by 9 percent due to its economic downturn. With the coronavirus lockdown and the continued economic downturn, China’s AVOD dropped by a further 14 percent in 2020 and will not better its 2018 total until 2024, though it will return to growth from 2021.
Japan is poised to grow from $2 billion in 2020 to $4.3 billion by 2026, with the U.K. rising from $1.8 billion to $3.4 billion in the same time period.
Simon Murray, principal analyst at Digital TV Research, said: “U.S. AVOD revenues will triple between 2020 and 2026 to $31 billion. Rather than lose market share as other countries catch up, the U.S. will grow its share of the global total from 37 percent in 2020 to 47 percent by 2026.”