Austin, Dec. 19, 2025 (GLOBE NEWSWIRE) -- The global Advertising Based Video On Demand (AVOD) Market was valued at USD 54.14 billion in 2025E and is expected to reach USD 218.31 billion by 2033, growing at a CAGR of 19.12% during the forecast period (2026-2033).
Due to consumers' growing inclination for free, ad-supported streaming video and their growing disinterest in traditional cable TV, the AVOD market is growing quickly. Demand in the market is also being driven by the rise in mobile video consumption, enhanced internet accessibility, and the expansion of smart TV use.
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The U.S. Advertising Based Video On Demand (AVOD) Market was valued at USD 18.52 billion in 2025E and is expected to reach USD 73.42 billion by 2033, growing at a CAGR of 18.87% from 2026-2033.
Growth in the U.S. AVOD Market is driven by rising demand for free, ad-supported streaming content, increasing cord-cutting trends, and expanding smart TV and mobile video consumption. Advertisers are shifting budgets toward digital platforms for better targeting and analytics, further accelerating market expansion.
Segmentation Analysis:
By Advertisement Position
Pre-roll segment dominated the Advertising Based Video On Demand (AVOD) Market with the highest revenue share of about 50% in 2025 and is expected to grow at the fastest CAGR from 2026-2033 as advertisers prefer its high viewer retention and guaranteed visibility before content playback.
By Enterprise Size
Large Enterprise segment dominated the Advertising Based Video On Demand (AVOD) Market with the highest revenue share of about 70% in 2025 due to substantial advertising budgets, strong focus on digital branding, and widespread adoption of AVOD platforms for large-scale audience targeting. Small and Medium Enterprise (SME) segment is expected to grow at the fastest CAGR from 2026-2033 as SMEs increasingly adopt cost-effective digital advertising.
By Device
TV segment dominated the Advertising Based Video On Demand (AVOD) Market with the highest revenue share of about 53% in 2025 and is expected to grow at the fastest CAGR from 2026-2033 as smart TV adoption accelerates, boosting long-form content consumption.
By Industry
Due to significant viewer engagement across music videos, movies, web series, and live events, and massive content consumption and frequent streaming activity, the Media & Entertainment segment dominated the Advertising Based Video On Demand (AVOD) market in 2025, holding the largest revenue share of almost 40%. From 2026 to 2033, the Retail & customer Goods industry is predicted to grow at the quickest CAGR due to growing need for tailored product advertisements, growing use of AVOD platforms for individualized customer outreach and brand visibility, and rising digital purchasing habit.
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Regional Insights:
North America dominated the Advertising Based Video On Demand (AVOD) Market with about 40% revenue share in 2025 due to the strong presence of leading streaming platforms, high digital advertising spending, widespread broadband penetration, and mature consumer adoption of ad-supported video services. Asia Pacific is expected to grow at the fastest CAGR of about 21.38% from 2026–2033, supported by rapid internet expansion, rising smartphone video consumption, and a booming young population shifting to free, ad-supported platforms.
Rising Shift from Traditional TV to Digital Streaming Augment AVOD Adoption Globally
Digital streaming has supplanted traditional cable and satellite TV as the go-to method for consuming content. This shift greatly benefits AVOD platforms, which provide free access to advertisement-supported films, television series, and live content. AVOD viewership is further accelerated by the increasing usage of smartphones, smart TVs, and linked gadgets. AVOD services are expanding quickly due to consumers' desire for free, flexible on-demand entertainment. This change is changing how people consume media and creating significant revenue prospects for streaming services that rely on advertisements.
Key Players:
- YouTube
- Tubi
- Pluto TV
- The Roku Channel
- Hulu (Ad-Supported)
- Peacock
- Crackle
- Xumo Play
- Plex
- Amazon Freevee
- Vudu
- Rakuten TV
- Samsung TV Plus
- LG Channels
- Popcornflix
- Fubo (Ad-Supported)
- Vizio WatchFree+
- MX Player
- TVer
- AbemaTV
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Recent Developments:
2024, YouTube rolled out nine new AI-driven features designed to improve recommendations, accessibility, and creative expression.
2025, at a Fox Upfront, Tubi announced new Originals for Gen Z, interactive ad formats (shoppable Carousels), and advanced CTV ad-buying tools.
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