A study from at Digital TV Research is predicting advertising video-on-demand (AVOD) revenues for TV series and movies will reach $69 billion by 2029, up by $30 billion from $39 billion in 2023.
While representing solid growth, the new Global AVOD Forecasts report notes that the new calculations are a lot lower than in the company’s previous edition due to lower ad growth and as platforms have delayed and/or scaled back their expansion plans.
The US is set to contribute 31% to the 2029 AVOD total, down from 40% in 2023 – showing that other countries are growing faster. The US is forecasted to increase by $6 billion between 2023 and 2029, with China adding about half that amount.
The. study also notes that the AVOD sector will be boosted by the growth of VOD providers’ hybrid AVOD-SVOD tiers, offered mostly in developed markets. The analyst also warned few platforms want to risk antagonising the investment community by expanding these services into developing markets where the rewards are lower.