The growth of AVOD services have shown a significant increase in recent years. In the midst of a health crisis, the latest research from Ampere Analysis shows that one in five users uses these services.
AVOD Services are consolidated as an efficient marketing strategy, offering users free content, however, it is vital to consider what will be the growth expectations that this type of format awakens.
Advertising vs Subscription
Currently, it is important to be clear about the difference between AVOD and SVOD services, since both have a direct correlation.
The meaning of AVOD (Advertising Video On Demand) is that it is a type of free video service that is financed through advertising. One of the most popular platform that uses this resource is YouTube, although it also has subscription services so that you can stop receiving ads, as well as other benefits.
On the other hand, SVOD services (Subscription Video On Demand) are video services under the subscription mode, that is, they require a payment for viewing, which is usually done on a monthly basis, platforms such as Netflix, Amazon Prime, among others, use this type of format.
AVOD Services what will your growth be?
Although platforms such as Netflix seem to set the tone in the audiovisual entertainment sector, under an SVOD pay-per-subscription model, the current era brings with it a growth of free formats financed through advertising.
In this sense, platforms such as Tubi, which is owned by Fox, offer AVOD Services, having a much larger catalog than Netflix, surpassed by Amazon Prime only in the general catalog. Although SVOD services, for example, have a higher number of users in the US, Ampere Analysis found that one in 5 users used AVOD services in the previous month.
Similarly, according to the latest Omdia report on the consumption behavior of AVOD Services, it states that the number of users who used AVOD services in 2020 increased significantly compared to 2019, led by India with more than 500 million users followed by the US with 200 million.
On the other hand, television has become a key medium for AVOD content. In 2020, 4 out of 10 users accessed YouTube through smart TVs or using various devices designed for it. Another example is the TikTok app, which arrived in the UK in 2020 on the TV screen through the Samsung brand.
However, it must be understood that AVOD and SVOD services do not compete directly with each other, since they are two services that complement each other, and both can coexist, this is evidenced in the platforms that offer a free and paid service. However, the behavior of users shows that they are full of visual content, so an appropriate proposal will have direct implications in the selection of services, which will lead to changes in SVOD services.
