Global AVOD revenue to grow 144% from 2020 to 2026Monday, May 24th, 2021
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.
Links: Digital TV Research