AVOD expenditure will more than double between 2019 and 2025 to reach $53 billion across 138 countries, according to 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 corona virus lockdown and the continued economic downturn will see China’s AVOD falling by a further 11.4% in 2020. However, 2021 will improve.
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. Some of these platforms have plans for international expansion, although 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 corona virus and subsequent lockdowns 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 lockdown to boost AVOD.”