AVoD ‘avalanche’ to take place in 2020

2020 will be the year of advertising-supported VoD (AVoD), with platforms using the model set to build scale and roll out internationally, according to Ampere Analysis.

Guy Bisson

The research firm has predicted an “avalanche” of free streaming platforms will go global in the next 12 months, boasting a wealth of library content.

Although use of the current AVoD services in the US is low, at 3-6% of internet-connected households, Ampere believes this to be merely the “quiet before the storm.”

The rise of AVoD platforms offering older content – as opposed to the original series and newer acquisitions prioritised by SVoD leaders – will provide a boon for distributors and sales agents looking to shop deep archive content, Ampere added.

As advertisers rush to support AVoD, online video advertising spend will inevitably increase as the platforms spread globally in 2020, Ampere said, with Disney’s Hulu and NBCUniversal’s Peacock set to adopt hybrid SVoD/AVoD models.

Guy Bisson, director at Ampere Analysis, said: “AVoD is coming and it’s going to make its mark on the VoD landscape rapidly. Its impact will be felt not just by the entertainment industry, but by advertising too as the shift that has already disrupted the subscription television market sweeps across the free-to-air sector.

“AVoD services are treading a well-trodden path with an early reliance on older content. But as their market position grows, we can expect them to begin acquiring newer content and even moving into original production activity as they battle for eyeballs in an increasingly crowded market.”