Ad-Supported Video on Demand Market

Ad-Supported Video on Demand Market Outlook (2024 to 2034)

The global ad-supported video on demand market has been valued at US$ 40.12 billion for 2024. Worldwide revenue from ad-supported video on demand solutions is projected to increase at a CAGR of 14.2% and reach a market value of US$ 150.8 billion by 2034-end.

In recent years, video-on-demand (VOD) services have completely transformed the way people consume entertainment and other forms of media. With the easy availability of streaming services such as Netflix, Amazon Prime Video, and Disney+, people now have easy access to a huge repository of movies, TV shows, documentaries, etc. This convenience, coupled with the flexibility of watching content anytime and anywhere, has made VOD a preferred choice for entertainment seekers worldwide. Beyond leisure, VOD platforms also serve as valuable resources for educational content, news updates, and lifestyle programming, catering to a diverse range of interests and preferences.

Whether it is catching up on the latest episodes of a TV series, discovering new films, or learning a new skill through online tutorials, VOD has become an integral part of modern-day entertainment consumption. Ad-supported video-on-demand (AVOD) platforms are offering a plethora of content that caters to both entertainment and educational needs.

AVOD platforms provide a diverse selection of movies, TV shows, and user-generated content, ensuring viewers have ample options to enjoy during their leisure time. Whether it is catching up on the latest blockbuster films or binge-watching popular series, AVOD platforms come with a wide range of entertainment choices.

Report Attributes	Details
Ad-Supported Video on Demand Market Size (2024E)	US$ 40.12 Billion
Forecasted Market Value (2034F)	US$ 150.8 Billion
Global Market Growth Rate (2024 to 2034)	14.2% CAGR
Canada Market Growth Rate (2024 to 2034)	13.5% CAGR
China Market Value (2034F)	US$ 33.7 Billion
North America Market Share (2024E)	28.6%
East Asia Market Share (2034F)	38.4%
Key Companies Profiled	YouTube Apple Inc. Cisco Systems, Inc. VUDU Inc. IndieFlix HBO Home Entertainment Inc. Compact Corp.

What are the Factors Influencing Sales of Ad-Supported Video on Demand Solutions?

“Rising Demand for Convenient and Flexible Access to Entertainment Content”

The market is exhibiting significant growth, propelled by the rising popularity of streaming devices as primary sources of entertainment. With the increasing demand for convenience and flexibility, consumers are turning to streaming devices to access a plethora of content, including ad-supported offerings.

Streaming devices have become integral parts of modern households, providing seamless access to a vast array of entertainment options at the touch of a button. From smart TVs to streaming sticks and set-top boxes, these devices offer users the freedom to explore and enjoy ad-supported video content from a variety of platforms.

Rising streaming device adoption has created a fertile environment for the expansion of the market. As more consumers embrace streaming devices as their preferred means of accessing content, the adoption of ad-supported video-on-demand solutions continues to increase.

“Abundance of Educational Content on Video-on-Demand Platforms”

Video-on-demand services offer a wealth of educational content, ranging from documentaries to tutorials, making them invaluable resources for learning. With the convenience and accessibility of streaming devices, users can easily access this educational content from the comfort of their homes. This accessibility has made streaming devices a preferred choice for individuals seeking to expand their knowledge and skills.

The combination of video on demand platforms and streaming devices is positively influencing market growth. The availability of educational content on these platforms, coupled with the widespread adoption of streaming devices, is reshaping the way people approach learning.

What is Hindering Ad-Supported Video on Demand Market Growth?

“Connectivity Issues and Privacy and Data Security Concerns Associated with Streaming Services”

Streaming devices, while revolutionizing how we consume media, are encountering obstacles that hinder their market growth. Prominent among these challenges are technical issues and privacy concerns. Technical issues such as buffering, connectivity issues, and poor video quality can frustrate users and degrade the overall viewing experience. These challenges arise from network congestion, slow internet speeds, or compatibility issues between devices and content.

Privacy concerns are also there as users become increasingly wary of data collection, tracking, and potential security issues associated with streaming devices. Recent data breaches and privacy issues have heightened these fears, leading users to question the safety of their personal information.

Country-wise Insights

Why is the United States an Attractive Market for Ad-Supported Video on Demand Providers?

“Large Audience Base and Substantial Investments by Advertisers into Online Platforms”

Attribute	United States
Market Value (2024E)	US$ 9.35 Billion
Growth Rate (2024 to 2034)	13% CAGR
Projected Value (2034F)	US$ 31.77 Billion

The United States has emerged as a leader in the market, drawing attention for its combination of a large audience base and high digital ad spending. With a tech-savvy population and widespread internet access, the country is a key market for ad-supported video platforms to thrive.

At the heart of this lies the country's robust digital advertising ecosystem. Advertisers pour substantial investments into online platforms to tap into the vast consumer market, fueling the demand growth for ad-supported video services. This ad revenue enables platforms to offer a lot of free content to viewers, further driving the popularity of streaming devices, and leading the United States to occupy a dominant ad-supported video on demand market share.

What is the Demand Outlook for Ad-Supported Video on Demand Solutions in China?

“Robust Digital Infrastructure Ensuring Seamless Streaming Experiences”

Attribute	China
Market Value (2024E)	US$ 8.67 Billion
Growth Rate (2024 to 2034)	14.5% CAGR
Projected Value (2034F)	US$ 33.7 Billion

China has emerged as a crucial market for the streaming devices industry, fueled by its vast population and the steady expansion of over-the-top (OTT) services. With over 1.4 billion people, China has a massive consumer base looking for convenient access to entertainment content.

Surge in the demand for streaming devices is being pushed by the growing popularity of OTT services in the country. From video-on-demand platforms to live streaming services, Chinese consumers are increasingly turning to digital platforms for their entertainment needs.

China's robust digital infrastructure, including broadband internet and 5G networks, is ensuring seamless streaming experiences for users across the country. This, coupled with a competitive market landscape and government support for technological advancements, has created a lucrative market for streaming device manufacturers to thrive in.

China's combination of a vast population and steady expansion of OTT services make it a key market, with ample opportunities for growth and innovation over the coming years.

Category-wise Evaluation

Why is Travel & Tourism Content Widely Preferred by Viewers?

“Desire for Exploration and Discovery among Viewers”

Attribute	Travel & Tourism
Segment Value (2024E)	US$ 13.36 Billion
Growth Rate (2024 to 2034)	13.5% CAGR
Projected Value (2034F)	US$ 53.08 Billion

Preference for travel and tourism content among viewers is being driven by a deep-seated desire for exploration and discovery. Viewers are attracted to the captivating nature of distant places and exotic cultures, fueling a surge in travel-related content consumption.

From beautiful landscapes to immersive cultural experiences, travel videos offer people a virtual path to new places and environments, inspiring viewers to explore beyond. This need for new discoveries, coupled with the ability to escape into captivating moments and environments, is driving the popularity of travel and tourism content among audiences across the world, resulting in the expansion of the ad-supported video on demand market size.

Which Streaming Device Accounts for Higher Revenue Generation?

“Built-in Streaming Capability of Smart TVs Contributing to Their Popularity”

Attribute	Smart TVs
Segment Value (2024E)	US$ 16.13 Billion
Growth Rate (2024 to 2034)	13.2% CAGR
Projected Value (2034F)	US$ 64.99 Billion

Smart TVs have emerged as the preferred choice among viewers in the market. Offering built-in streaming capabilities and seamless integration with online platforms, smart TVs provide a convenient and all-in-one solution for accessing digital content.

With their user-friendly interfaces and a wide range of features, including voice control and app compatibility, smart TVs cater to the diverse needs of modern consumers. As a result, they continue to lead the market, providing users with easy access to a world of entertainment right from their homes.

Market Environment

Key players in the ad-supported video on demand industry, such as Alphabet, Inc., Amazon.com, Inc., Hulu LLC (The Walt Disney Company), AT&T, Inc., Netflix, Inc., and Apple, Inc., are actively engaged in providing online VoD solutions. These industry giants are resorting to strategic collaborations to expand their operations internationally.

Leading market players are entering into alliances with key partners to bolster their presence in diverse markets. By leveraging these partnerships, they aim to enhance their service offerings and reach a wider audience base. This concerted effort underscores their commitment to innovation and growth in the rapidly evolving ad-supported video-on-demand market trends.

Through collaborative ventures and synergistic efforts, these companies are positioning themselves as frontrunners in the global market. As they navigate the competitive terrain, strategic partnerships serve as catalysts for driving expansion and solidifying in the cloud streaming market as well.

• In July 2021, Carlyle Group completed the acquisition of Liveu, a prominent live video streaming company, for an estimated sum of approximately US$ 400 million. This strategic move bolsters the capabilities of the video transmission and streaming service, enhancing its market position.

• In May 2021, AT&T inked a landmark agreement to merge its content division, Warner Media, with Discovery, Inc. Noteworthy properties under AT&T include HBO, CNN, and Warner Bros., while Discovery Inc. boasts channels like TLC, Animal Planet, and the Discovery Channel.

Key Segments of Ad-Supported Video on Demand Market Research

• By Content :

  • Media & Entertainment
  • Travel & Tourism
  • Sports

• By Streaming Device :

  • Smart TVs
  • Laptops & Desktops
  • Smartphones & Tablets
  • Other OTT Devices

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa