Worldwide AVOD revenues for TV series and films are predicted to hit US$91 billion in 2028, an increase from US $38 billion in 2022, as per the latest market forecast from Digital TV Research
As stated by the research outfit, the top 10 countries will represent 81% of the world’s total by 2028.
By 2028, 15 platforms will create AVOD profits in excess of US$1 billion, including six international platforms, five from the US and three from China.
In spite of the present downturn in the European and global economy, analysts are generally optimistic about the longer-term chances for growth in ad-funded streaming.
Research outfit Omdia’s Maria Rua Aguete predicted that TikTok will attract more than two thirds of online video ad revenue by 2027, more than both Meta and YouTube combined.
The findings, revealed by Omdia at the conference here in London, showed that 37% of all online video advertisements would come from the Byte Dance-owned app.
Simon Murray, Principal Analyst at Digital TV Research, said: “An exciting development will be the global rollout of hybrid AVOD-SVOD tiers by major platforms such as Netflix, Disney+, HBO and Paramount+.
These four platforms will generate AVOD revenues of $22.6 billion by 2028 – or a quarter of the world’s total,” he continued.
By contrast, second-placed China fell in 2020 due to its economic downturn.
The Global AVOD Forecasts think that it will take until 2024 for China to improve its 2019 result.
One of the key dynamics has been the 2021 government prevention on fan-based culture, which resulted in a lot less reality shows from the OTT platforms – and less viewer demand.
The Chinese AVOD market is set to be worth $8.3 billion by 2027, increasing from $6.4 billion in 2021.
The UK and Japan are set to presume third and fourth place individually in the global AVOD market.
The former is set to see revenues grow from $1.6 billion in 2021 to $3.1 billion by the end of 2026 while Japan’s growth over the same period will be from $1.5 billion to $3 billion.