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Global AVOD spend set to double

June 1, 2020 12.55 Europe/London By Chris Dziadul

AVOD expenditure will more than double between 2019 and 2025 to reach $53 billion across 138 countries.

According to the latest report from Digital TV Research, the US became the largest AVOD expenditure country in 2019 as China saw expenditure fall by 8.9% due to its economic downturn. A combination of the coronavirus lock down and the continued economic downturn will see China’s AVOD falling by a further 11.4% in 2020. However, in 2021 will improve.

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

Several major platforms will start soon in the US. Although some have plans for international expansion, this will involve not renewing existing lucrative contracts with local broadcasters and pay TV operators. Therefore, not all of the US-based AVOD platforms will start in all countries.

Murray continued: “Global AVOD growth will dip during 2020, but it is not expected to fall. The coronavirus and subsequent lock downs 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 lock down to boost AVOD”.

For more information on the Global AVOD Forecasts report, please contact: Simon Murray, simon@digitaltvresearch.com, Tel: +44 20 8248 5051

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Filed Under: Newsline, On Demand/VOD, Platforms, Research Tagged With: AVOD Edited: 1 June 2020 12:55

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About Chris Dziadul

Chris is our Central & East Europe Editor. You can talk to Chris on Twitter @chrisdziadul or by email at cdziadul@broadbandtvnews.com

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