Advertising-Based Video On Demand Market By Platform Type (Pure-Play AVOD Platforms, Hybrid Platforms, Broadcaster-Backed Services); By Device (Mobile, Smart TV, Desktop, Others); By Content Genre (Movies and Drama, Sports, News, Kids Programming, Entertainment & Lifestyle); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Advertising-Based Video On Demand (AVOD) Market will grow at a CAGR of 9.8%, valued at USD 36.2 billion in 2024, and projected to reach USD 63.1 billion by 2030, according to Strategic Market Research.

 

AVOD is a digital streaming model where users access video content for free or at a subsidized rate in exchange for advertisements. Unlike subscription-based models (SVOD) such as Netflix or transactional models (TVOD), AVOD depends on ad revenues, making it a crucial pillar of the evolving entertainment economy between 2024 and 2030.

 

Several macro forces are shaping this market. Consumer behavior is shifting as inflation and subscription fatigue push households to reduce monthly streaming costs, leading many to adopt free or ad-supported platforms like YouTube, Pluto TV, and Tubi. At the same time, global advertisers are reallocating budgets from linear TV to digital video, seeking better audience targeting and measurable engagement. Technology is also playing a pivotal role, with AI-driven recommendation engines, programmatic ad placements, and advanced analytics enhancing AVOD’s value proposition.

 

The policy environment is becoming equally significant. Regulators are weighing in on issues such as data privacy, advertising transparency, and local content quotas. These policies could reshape monetization strategies and content curation across different regions.

 

The AVOD landscape is supported by a diverse group of stakeholders. Content creators produce or license shows to attract and retain audiences. Streaming platforms act as aggregators, delivering a mix of original and syndicated content. Advertisers and brands use AVOD to reach targeted demographics with measurable ROI. Technology providers enable real-time bidding, ad insertion, and personalization at scale. Regulators ensure compliance with advertising standards and privacy safeguards, while investors are fueling expansions through acquisitions and funding rounds.

 

What sets AVOD apart is its ability to align the interests of all players. For consumers, it provides free access to premium content. For advertisers, it offers measurable engagement. For platforms, it represents a scalable growth engine without the churn risks of subscription fatigue.

 

Between 2024 and 2030, AVOD is expected to strengthen its foothold in mature regions like North America while accelerating in emerging economies where digital adoption is rising but disposable income remains limited. This dual momentum underlines why AVOD is increasingly viewed as a mainstream component of the global video ecosystem rather than a complementary model.

 

Market Segmentation And Forecast Scope

The advertising-based video on demand market can be segmented across several dimensions, each reflecting how platforms and advertisers approach audience engagement, monetization, and content delivery. This segmentation outlines the core categories shaping the industry between 2024 and 2030.

By Platform Type
The market divides into pure-play AVOD platforms, hybrid platforms with both subscription and ad-supported tiers, and broadcaster-backed free streaming services. Pure-play providers like Pluto TV and Tubi have built their identity entirely around free, ad-supported access. Hybrid platforms such as Netflix and Disney+ have introduced ad-supported options in response to slowing subscriber growth. Broadcaster-backed services, including Peacock and ITVX, combine legacy television content with digital-first programming to capture wider demographics. Hybrid models are gaining momentum as traditional SVOD players adapt to shifting consumer budgets.

 

By Device
Device-based consumption remains a key driver of AVOD engagement. Mobile streaming continues to lead in emerging markets, where smartphones often serve as the primary internet device. Smart TVs and connected devices dominate in North America and Europe, supported by high broadband penetration and the preference for lean-back viewing experiences. Desktop usage persists in certain regions, particularly for workplace streaming, though its relative share is declining. Smart TVs are expected to grow fastest as manufacturers embed pre-installed AVOD apps and push integrated advertising ecosystems.

 

By Content Genre
Content segmentation reveals how viewing preferences align with advertiser demand. Popular genres include entertainment and lifestyle, movies and drama, sports, news, and kids programming. Sports and live events attract the highest advertising premiums, while kids programming delivers long engagement times, making it attractive to family-oriented brands. In 2024, movies and drama collectively account for the largest share of viewing hours, but sports is projected to register the fastest growth due to expanding rights deals for live digital distribution.

 

By Region
Regional segmentation highlights stark differences in adoption and monetization models. North America leads the market with mature infrastructure and advertiser willingness to pay premium CPMs. Europe follows with strong broadcaster-backed AVOD platforms and regulatory emphasis on local content quotas. Asia Pacific represents the highest growth potential, driven by rising internet penetration in India, Southeast Asia, and China. Latin America and the Middle East & Africa remain underpenetrated but show increasing activity through telecom partnerships and mobile-first streaming bundles.

 

Scope Note
While AVOD segmentation appears functional, it is becoming commercial as well. Platforms are now tailoring ad formats by region, introducing skippable ads, interactive units, and shoppable video campaigns. This evolution indicates that AVOD is not just about providing free access to content but about optimizing monetization strategies across multiple layers of the value chain.

 

Market Trends And Innovation Landscape

The advertising-based video on demand market is evolving rapidly, shaped by technological innovation, content strategies, and advertising models that balance user experience with monetization. Between 2024 and 2030, several trends are defining the next phase of AVOD growth.

 

One of the most visible changes is the rise of hybrid monetization models. Platforms that previously relied exclusively on subscription revenues are adding ad-supported tiers to counter slowing subscriber growth and rising churn. Disney+, Netflix, and HBO Max have all launched low-cost AVOD options, signaling that even premium brands see advertising as essential for long-term scale. This blurring of lines between AVOD and SVOD is creating a wider competitive landscape, where advertisers gain access to premium audiences once considered unreachable.

 

Ad formats are also undergoing transformation. Traditional pre-roll and mid-roll ads remain core, but platforms are introducing interactive and shoppable ads that encourage direct engagement. These formats allow brands to convert impressions into measurable actions, aligning with the performance-driven expectations of modern advertisers. Programmatic ad buying further strengthens this shift, as automated platforms enable real-time targeting based on demographic, behavioral, and contextual data.

 

Technology integration is reshaping personalization. Artificial intelligence is being deployed to recommend content, but equally to optimize ad relevance. Platforms are leveraging viewer data to serve ads that align with individual preferences, reducing ad fatigue while increasing engagement rates. Dynamic ad insertion, already common in live sports and linear streaming, is expanding into on-demand content to create more flexible inventory and higher fill rates.

 

Another important trend is the increasing emphasis on content localization. As AVOD expands into emerging markets, regional content libraries are being prioritized to attract mass audiences. Partnerships with local studios, dubbing, and subtitling are becoming essential for platforms entering countries like India, Brazil, and Indonesia. Localized advertising also aligns with this strategy, enabling brands to connect with viewers in culturally relevant ways.

 

Regulation is beginning to shape innovation. Privacy laws in Europe and North America are pushing platforms to rethink data-driven ad targeting. In response, contextual targeting and aggregated audience data models are gaining traction, ensuring compliance while still offering advertisers meaningful insights. These adjustments are expected to redefine how platforms balance personalization with privacy protections.

 

Finally, partnerships and acquisitions are accelerating innovation cycles. Broadcasters, telecom operators, and technology providers are collaborating to launch joint AVOD ventures, pooling content libraries and advertising networks. At the same time, major platforms are acquiring smaller AVOD players to consolidate audiences and enhance ad inventory.

 

In essence, AVOD innovation is no longer confined to ad delivery. It now spans the entire ecosystem — from how content is produced and localized to how ads are targeted, measured, and converted. The model is maturing into a sophisticated marketplace that brings together content, technology, and commerce in ways that traditional television could never achieve.

 

Competitive Intelligence And Benchmarking

The advertising-based video on demand market is competitive yet fragmented, with players adopting different strategies depending on their scale, content libraries, and advertising technology capabilities. Success in this market depends not only on attracting large audiences but also on effectively monetizing those audiences through advertising models that appeal to brands.

 

YouTube remains the largest AVOD platform globally, with its vast user base and seamless integration into Google’s advertising ecosystem. Its advantage lies in scale, user-generated content, and granular audience targeting, making it a default choice for advertisers seeking reach and measurable engagement. However, YouTube faces challenges in content moderation and in balancing advertiser-friendly policies with creator freedom.

 

Pluto TV, owned by Paramount, has carved out a strong position in the free streaming space with its curated channel-based model. Its strategy focuses on offering a cable-like experience supported entirely by ads. The platform has grown quickly in North America and Europe and is expanding aggressively into Latin America, supported by Paramount’s existing content assets.

 

Tubi, acquired by Fox Corporation, has emphasized breadth of content and accessibility. By offering a wide range of movies and series at no cost, Tubi has attracted younger, price-sensitive audiences. Fox’s investment in advertising infrastructure has allowed Tubi to deliver better-targeted campaigns for brands, strengthening its competitive appeal.

 

Hulu, which operates both subscription and ad-supported tiers, plays a hybrid role. Its advantage comes from high-quality premium content and integration with Disney’s broader ecosystem, which includes Disney+ and ESPN+. The dual-revenue model allows Hulu to maximize monetization while offering flexibility to users.

 

Peacock, backed by NBCUniversal, combines broadcast television content with original programming in an ad-supported framework. Its edge comes from access to live events, including sports, and its strong U.S. brand recognition. The service continues to refine its advertising formats, including fewer but higher-value ads designed to balance user experience with revenue.

 

Other players, such as ITVX in the UK, Voot in India, and Rakuten TV in Europe, are leveraging regional strength and broadcaster heritage. Telecom operators are also entering the AVOD market by bundling free video services with data plans, offering built-in audiences for advertisers.

 

In terms of benchmarking, global leaders such as YouTube dominate in scale, while specialized platforms like Pluto TV and Tubi stand out for innovation in format and user targeting. Hybrid services like Hulu and Disney+ with ads demonstrate that premium content can thrive in an advertising-supported environment. Regional platforms remain competitive by tailoring their libraries and ad models to local preferences, which often proves more effective in emerging markets than global players.

 

The competitive landscape shows a clear divide. Scale-driven platforms capture massive audiences, while niche or regional players focus on differentiated experiences and localized advertising. Both strategies have proven viable, and the market is likely to see more consolidation as larger players seek to acquire smaller competitors to expand reach and ad inventory.

 

Regional Landscape And Adoption Outlook

The adoption of advertising-based video on demand varies significantly by region, shaped by differences in infrastructure, consumer behavior, and advertiser maturity. Between 2024 and 2030, the regional outlook reveals a mix of mature, growth, and emerging markets.

North America continues to dominate the AVOD landscape, supported by a combination of strong broadband penetration, widespread connected TV adoption, and high advertiser spending. The United States remains the single largest market, where platforms like Pluto TV, Tubi, Hulu, and YouTube are firmly established. Advertisers in North America are increasingly shifting budgets away from traditional cable and broadcast toward digital video, with AVOD offering the reach and targeting capabilities they require. Canada follows a similar path, though at a smaller scale, with broadcaster-backed services such as CBC Gem complementing global platforms.

 

Europe represents the second-largest AVOD region, with adoption patterns shaped by strong broadcaster involvement and regulatory frameworks. Countries such as the UK, Germany, and France have established AVOD platforms backed by public and commercial broadcasters, including ITVX, Joyn, and MyTF1. Local content quotas imposed by the European Union are influencing platform strategies, encouraging investment in region-specific programming. While Europe’s advertiser budgets are smaller compared to North America, the region’s stable digital infrastructure and policy support make it an important market for expansion.

 

Asia Pacific is projected to deliver the fastest growth in AVOD adoption. High smartphone penetration, rising internet affordability, and a large population base make countries like India, Indonesia, and the Philippines attractive for free, ad-supported content. Platforms such as MX Player and Voot are building strong user bases by combining regional language programming with free access. China remains unique, with domestic giants like iQIYI and Tencent Video operating under state regulations. Japan, South Korea, and Australia are mature sub-markets, where hybrid AVOD-SVOD models are becoming increasingly popular.

 

Latin America is an emerging region where AVOD adoption is accelerating as disposable incomes remain limited and free content is highly valued. Brazil and Mexico lead this trend, with platforms such as Globoplay and ViX expanding their ad-supported catalogs . Telecom companies are playing an important role in bundling AVOD services with mobile data plans, broadening access to underserved segments. Advertisers are gradually increasing investment, though challenges remain around measurement and ad inventory quality.

 

The Middle East And Africa remain underpenetrated compared to other regions, but opportunities are growing. In the Middle East, countries such as Saudi Arabia and the UAE are investing in local streaming infrastructure, with broadcasters and telecom providers launching ad-supported services. Africa’s AVOD growth is being driven by mobile-first platforms and international players experimenting with lightweight apps to overcome bandwidth constraints. While advertising markets remain relatively small, the long-term potential is significant due to the rapid expansion of internet connectivity and rising demand for affordable entertainment.

 

Overall, regional dynamics highlight the dual nature of AVOD growth. Mature markets in North America and Europe provide stability and premium advertising value, while Asia Pacific, Latin America, and parts of the Middle East and Africa offer scale and long-term opportunity. The ability of platforms to adapt content and advertising strategies to regional preferences will define competitive success between now and 2030.

 

End-User Dynamics And Use Case

The advertising-based video on demand market serves a wide range of end users, each interacting with the ecosystem differently depending on their objectives. End users can broadly be grouped into consumers, advertisers, content creators, and platform operators, with each playing a distinct role in shaping the market’s direction between 2024 and 2030.

 

Consumers are the foundation of the AVOD model. They represent a diverse audience base, from cost-sensitive viewers in emerging markets to cord-cutters in mature economies who are seeking alternatives to expensive subscription services. For younger demographics, particularly Gen Z and millennials, AVOD offers flexibility, free access, and localized content. Older demographics are drawn in by curated channels and familiar television programming repurposed for digital platforms. Consumer adoption is driven by ease of access, minimal barriers to entry, and the perception of value in free streaming, even with advertisements.

 

Advertisers are equally central. Brands view AVOD as a platform to engage audiences at scale with measurable outcomes. Unlike traditional television, AVOD provides data-driven targeting, allowing advertisers to reach specific segments by age, interest, geography, or behavior . Large global brands leverage premium AVOD platforms to run high-value campaigns, while small and medium enterprises are finding new opportunities in programmatic advertising, which enables cost-efficient entry. The advertising ecosystem is becoming more sophisticated, with greater focus on interactive and shoppable formats designed to boost direct consumer engagement.

 

Content creators see AVOD as an important distribution and monetization channel. Independent studios, traditional broadcasters, and digital-first creators are licensing or producing content tailored for ad-supported platforms. By participating in AVOD, they benefit from broader reach and recurring ad revenue without relying solely on subscription models. In some cases, AVOD has become a launching pad for original content, allowing smaller creators to gain visibility before transitioning into broader commercial partnerships.

 

Platform operators are the orchestrators of the ecosystem. They balance the dual priorities of audience growth and advertising monetization. For global players like YouTube, scale ensures massive ad inventory, while regional platforms like MX Player or ITVX leverage local content to secure loyalty. Operators must continuously innovate in ad formats, personalization, and user experience to keep both consumers and advertisers engaged.

 

Use Case Highlight
A regional telecom operator in India partnered with an AVOD platform to bundle free streaming with prepaid mobile plans. The partnership targeted rural and semi-urban users who had limited access to paid subscription services. Within six months, the platform reported a 40 percent increase in active users, while advertisers benefited from access to a previously untapped audience segment. The telecom operator gained higher customer retention, and the AVOD platform expanded its market footprint at minimal acquisition cost. This case underscores how AVOD can thrive when aligned with local infrastructure and consumer realities.

End-user dynamics reveal a market where each group’s incentives are interconnected. Consumers demand free, accessible content, advertisers seek measurable returns, content creators pursue visibility and revenue, and platforms aim to scale profitably. The ability to balance these competing interests is what makes AVOD one of the most dynamic models in digital media today.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• Netflix introduced its ad-supported tier in late 2022, expanding AVOD into the premium subscription space and attracting advertisers that previously could not access its audience.

• Paramount’s Pluto TV expanded aggressively into Latin America and Europe, leveraging its broadcaster-backed model to capture new regional audiences.

• Tubi, owned by Fox Corporation, crossed record monthly active users in 2023, supported by investments in original content and advanced ad-tech integrations.

• YouTube enhanced its connected TV advertising tools in 2024, offering brands more detailed measurement of engagement on large screens, where viewing time continues to grow.

 

Opportunities

• Expansion in emerging markets presents one of the strongest opportunities. With rising internet penetration and limited willingness to pay for subscriptions, AVOD is well positioned to scale rapidly in countries like India, Brazil, and Indonesia.

• Advances in interactive and shoppable ad formats will enable advertisers to convert passive viewership into direct transactions, unlocking new monetization pathways.

• Partnerships between telecom operators and AVOD platforms are creating bundled offerings that reduce customer acquisition costs and expand reach across underserved demographics.

 

Restraints

• Data privacy regulations in regions like Europe and North America may limit personalization capabilities, reducing the efficiency of targeted advertising.

• Intense competition among platforms is creating content licensing challenges and driving up acquisition costs, which may squeeze margins for smaller AVOD providers.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 36.2 Billion
Revenue Forecast in 2030	USD 63.1 Billion
Overall Growth Rate	CAGR of 9.8% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Platform Type, By Device, By Content Genre, By Geography
By Platform Type	Pure-Play AVOD Platforms, Hybrid Platforms, Broadcaster-Backed Services
By Device	Mobile, Smart TV, Desktop, Others
By Content Genre	Movies and Drama, Sports, News, Kids Programming, Entertainment & Lifestyle
By Region	North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, UK, Germany, France, China, India, Japan, Brazil, Mexico, etc.
Market Drivers	- Rising consumer shift toward free content - Growth in digital ad spending - Expansion of hybrid monetization models
Customization Option	Available upon request