Global AVOD revenue to grow 144% from 2020 to 2026

Global AVOD spend to reach $66 billion

AVOD expenditure for TV episodes and movies will climb by 144% between 2020 and 2026 to reach $66 billion across 138 countries. AVOD growth dipped to ‘only’ 9.2% in 2020, but high growth will resume from 2021.

From the $39 billion additional revenues generated between 2020 and 2026, the US will contribute $21 billion and China $5 billion. Revenues will triple in India and the US.

The US became the largest AVOD country in 2019 as China saw expenditure fall by 9% due to its economic downturn. A combination of the corona virus lockdown and the continued economic downturn led to China’s AVOD dropping by a further 14% in 2020. China will not better its 2018 total until 2024, although growth will return from 2021.

Simon Murray, Principal Analyst at Digital TV Research, said: “US AVOD revenues will triple between 2020 and 2026 to $31 billion. Rather than lose market share as other countries catch up, the US will grow its share of the global total from 37% in 2020 to 47% by 2026.”

The US has both the most developed OTT sector in the world and the most developed advertising market. Successful AVOD platform launches in the US will not necessarily thrive elsewhere.