Revenues will triple in India and the US where AVOD revenues are set to triple between 2020 and 2026 to $31bn.
AVOD expenditure for TV episodes and movies will climb by 144% between 2020 and 2026 to reach $66bn across 138 countries, according to the latest report by Digital TV Research.
Its growth dipped to only 9.2% in 2020 but is set to increase significantly from this year onwards.
From the $39bn additional revenues generated between 2020 and 2026, the US will contribute $21bn and China $5bn. Revenues will triple in India and the US where AVOD revenues are set to reach triple between 2020 and 2026 to $31bn. The UK AVOD sector is set to almost double in value between 2020 and 2026 to total $3.44bn.
The US became the largest AVOD country in 2019 as China saw expenditure fall by 9% due to its economic downturn. A combination of the coronavirus lockdown and the continued economic downturn led to China’s AVOD dropping by a further 14% in 2020. China will not better its 2018 total until 2024, although growth will return from 2021.
Commenting on the findings of the report, Simon Murray, principal analyst at Digital TV Research, said: “US AVOD revenues will triple between 2020 and 2026 to $31bn. Rather than lose market share as other countries catch up, the US will grow its share of the global total from 37% in 2020 to 47% by 2026.”