AVOD is forecast to grow its revenues 25 percent in 2020, according to eMarketer.
That streaming niche has powerhouses in the fold, including Hulu, Peacock, IMDb TV, Pluto TV, Tubi, Redbox TV and the Roku Channel. The market recorded $849 million in the second quarter, per MoffettNathanson Research.
One reason for the hike is the rise in viewership, which is due, in part, to the pandemic. A second reason is that advertisers are moving budgets from traditional linear TV to digital platforms.
Another plus — the biggest AVODs are owned by major players: NBCU owns Peacock, Amazon owns IMDb TV, ViacomCBS owns Pluto, Disney owns Hulu, and Fox owns Tubi. Some of this growth is due to reallocated TV spend, reports Media Play News.
In fact, eMarketer says a significant uptick in AVOD revs contrasts with drop in broadcast and cable ad spend. Advertisers are shifting upfront moneys for the same company to its streamers.
On the audience front, SVODs command attention. The numbers for Disney+ and Netflix are huge and retain the lion’s share of viewing. Disney+ hit nearly 60.5 million subscribers in August, after less than a year.
But ad-supported streamers — such as AVODs (ad-supported video on demand), FAST (free ad-supported) and CTV (connected TV) — are gaining traction, accounting for 23 percent of U.S. streaming, according to Nielsen.