US AVOD Market Size Likely to Expand at a CAGR of 6.8% By 2033

As per the current market research conducted by the CMI Team, the US AVOD Market size is expected to record a CAGR of 6.8% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 12,011.2 Million. By 2033, the valuation is anticipated to reach USD 21,713.4 Million.

US AVOD Market: Growth Factors and Dynamics

• Rising Demand for Free Content: The increasing consumer preference for free, ad-supported content is a significant growth driver in the US AVOD market. As subscription fatigue sets in and consumers seek cost-effective entertainment options, AVOD platforms like Pluto TV and Tubi offer a compelling alternative with a diverse range of free content.

• Expansion of Streaming Audiences: The growing adoption of streaming services and connected devices among US households expands the audience base for AVOD platforms. With the proliferation of smart TVs, streaming sticks, and mobile devices, AVOD providers have a broader reach, attracting both cord-cutters and traditional TV viewers seeking additional content options.

• Content Partnerships and Licensing Deals: Strategic partnerships and content licensing agreements with major studios, networks, and independent producers bolster the content libraries of AVOD platforms. By offering a mix of licensed movies, TV shows, news, and sports content, AVOD providers enhance user engagement and attract advertisers looking to reach specific demographics.

• Targeted Advertising Capabilities: The ability to deliver targeted advertisements based on user demographics, interests, and behavior is a key competitive advantage for AVOD platforms. Leveraging data analytics and machine learning algorithms, AVOD providers optimize ad targeting and personalization, driving higher ad engagement and revenue per user.

• Investment in Original Content: While licensed content forms the backbone of many AVOD platforms, there’s a growing trend towards original content production to differentiate offerings and attract viewers. Platforms like Roku Channel and IMDb TV invest in original movies and series to enhance their content libraries and compete with subscription-based streaming services.

• Monetization Opportunities for Content Creators: AVOD platforms offer monetization opportunities for content creators through revenue-sharing agreements and advertising partnerships. Independent filmmakers, YouTubers, and niche content producers can reach larger audiences and generate income by distributing their content on AVOD platforms, contributing to the overall growth and diversity of the US AVOD market.

• Integration with Smart TV Manufacturers: Collaborations between AVOD platforms and smart TV manufacturers enhance accessibility and convenience for users. Partnerships, such as Pluto TV with Philips Smart TVs, expand the reach of AVOD services, providing seamless access to a wide variety of content directly on smart TV interfaces.

US AVOD Market: Partnership and Acquisitions

• In 2023, Pluto TV, a free ad-supported streaming service, debuted its AVOD platform in India. Offering a diverse range of content encompassing movies, TV shows, news, and sports, Pluto TV’s entry marks a significant addition to India’s streaming landscape.

• In 2023, Tubi, a free ad-supported streaming service, expanded its presence by launching its AVOD platform in Latin America. With a diverse library spanning movies, TV shows, news, and sports, Tubi’s entry enriches Latin America’s streaming options.

Report Scope

US AVOD Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the US AVOD Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Increased Streaming Consumption: The COVID-19 pandemic led to a surge in streaming consumption as people stayed indoors due to lockdown measures. This resulted in higher viewership on AVOD platforms as consumers sought entertainment options while spending more time at home.

• Advertising Revenue Fluctuations: While streaming viewership increased during the pandemic, advertising budgets faced fluctuations due to economic uncertainty. Some advertisers reduced spending or paused campaigns, impacting the ad revenue earned by AVOD platforms.

• Adaptation to Changing Consumer Behavior: AVOD platforms adapted their content strategies to cater to changing consumer preferences during the pandemic. They diversified their content offerings to include more news, educational content, and feel-good entertainment to meet the evolving needs of viewers.

• Shift towards Digital Advertising: As traditional advertising channels faced disruptions during the pandemic, advertisers increasingly turned to digital platforms, including AVOD services, to reach audiences. This shift towards digital advertising benefited AVOD platforms, driving an increase in ad spending and revenue.

• Investment in Original Content: To retain and attract viewers post-pandemic, AVOD platforms ramped up their investment in original content production. By offering exclusive shows and movies, they aimed to differentiate themselves from competitors and increase user engagement.

• Partnerships and Collaborations: AVOD platforms forged strategic partnerships with content creators, production studios, and advertisers to fuel their recovery efforts. Collaborations resulted in the acquisition of premium content, innovative advertising solutions, and cross-promotional opportunities, driving growth in the post-pandemic landscape.

In conclusion, the COVID-19 pandemic has had a mixed impact on the US AVOD Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the US AVOD Market:

• Pluto TV
• Tubi (Owned by Fox Corporation)
• Roku Channel
• IMDb TV
• Peacock (Owned by NBCUniversal)
• Crackle
• Xumo
• Plex (Owned by Plex Inc.)
• Vudu
• Redbox Free Live TV
• Samsung TV Plus
• Sony Crackle
• NewsON
• Vevo
• Others

The US AVOD Market is segmented as follows:

By Content Type

• Movies
• TV Shows
• Original Series
• News
• Sports
• Others

By Advertising Format

• Pre-Roll Ads
• Mid-Roll Ads
• Post-Roll Ads
• Banner Ads
• Interactive Ads
• Others

By Platform Type

• Standalone AVOD Platforms
• Integrated AVOD in Streaming Services
• AVOD-Supported Social Media Platforms

By Device Type

• Mobile Devices
• Desktops and Laptops
• Smart TVs
• Streaming Devices
• Others