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AVOD to Take Pandemic Hit, Research Firm Says

(Image credit: roku)

Global revenue generated by over-the-top video services is set to nearly double from 2019 -2025, according to Digital TV Research, reaching $167.4 billion.

But the bad news, the firm said, will be a short-term hit to the growth of ad-supported VOD (AVOD) streaming services. The category, which includes Roku Channel, Tubi, Pluto TV, IMDb TV and others, will see only 10% growth this year, rising to $26.711 billion in revenue. By 2025, it will expand to $53.522 billion. 

Notably, last June, Digital TV Research predicted that the AVOD sector would grow to generate $56 billion by 2024.

“Advertising confidence has been hit,” said Simon Murray, principal analyst for Digital TV Research. “We expect lower growth for AVOD in 2020, but recovery thereafter.”

SVOD services, meanwhile, will more than double from 2019 - 2025 to nearly $98 billion. 

“SVOD has boomed during the lockdown, and thanks to the rollout of Disney Plus,” Murray added.

Digital TV Research’s analysis covers 138 countries, encompassing not only SVOD and AVOD services, but also online video rentals and sales. 

(Image credit: Digital TV Research)