In 2028, the worldwide revenues from ad-supported video on demand (AVOD) for TV series and movies are projected to soar to $91 billion, displaying a substantial increase from the $41 billion recorded in 2022.
The United States is expected to account for 41% of the total revenue in 2028, contributing an additional $20 billion between 2022 and 2028.
By 2028, the AVOD landscape will witness the emergence of nine platforms that will generate revenues surpassing $3 billion. Among these, five platforms will have a global presence, while three will originate from the United States, and one will hail from China. Despite this growth, the market is predicted to maintain its fragmented nature.
By 2028, Disney+ is projected to emerge as the dominant player in the AVOD space, reaching an impressive $11.4 billion in revenues. Following the footsteps of its success in the United States, Disney+ is expected to adopt a hybrid AVOD-SVOD (ad-supported video on demand – subscription video on demand) model.
In this approach, existing subscribers will be offered the option to transition to the hybrid tier, which combines both ad-supported content and subscription-based services. Subscribers who opt for the SVOD-only tier may be required to choose a higher-priced plan to access the full range of content.
Simon Murray, Principal Analyst at Digital TV Research, said, “Disney+ will be the AVOD winner, with $11.4 billion by 2028. Disney+ is expected to follow its US example by converting its existing subscribers to the hybrid AVOD-SVOD tier, with SVOD-only subscribers having to choose to pay more.”
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