Global ad-supported video-on-demand (AVOD) revenues from series and features will more than double this year, from $33 billion to $70 billion, projects Digital TV Research.
U.S. AVOD revenue will grow by $19 billion, to $31 billion by 2027, and global share projected to rise from 39% to 46% -- remaining the country with the largest share by far.
The U.S., with “the world’s most sophisticated advertising industry by some distance” and greater content choice than in any other market, will remain the dominant AVOD market, notes Simon Murray, principal analyst at Digital TV Research.
China is in second place, projected to have a 6.4% share of AVOD revenues this year and 8.5% by 2026.
China’s AVOD revenues slumped in 2020 due to its economic downturn, and the government’s clampdown this year on fan-based culture greatly reduced reality show releases from the OTT platforms and dampened viewer demand, according to the analysis. As a result, it will take until 2024 for China to better its 2019 total.
The U.K., Japan and India are in third, fourth and fifth place , respectively. The U.K. is projected to increase its share from 1.6% this year to 3.1% in 2026.
Thirteen of the 138 countries analyzed will generate more than $1 billion in 2027, up from just five in 2021.