STREAMERS
THE RISE OF AVOD
million ‘streaming-only’, he points out. Second is the high penetration of high-end
connected TVs. Then there’s the fact that evidence show AVOD and SVOD are viewed by many as complementary. “In the US, around 80% of Pluto TV users are also
SVOD subscribers,” he explains. “People still want a lot of variety – even when they are SVOD-first. And that’s precisely what AVOD, which tends to be based around familiar shows packaged in a contemporary way, gives.” That said, as AVOD grows, so to is AVOD
platform owners’ investment in original content – mirroring the content spending of SVOD streamers, albeit on a smaller scale. And AVOD services which have invested highest in original content have enjoyed the greatest growth, according to Hannah Walsh, Research Manager at Ampere Analysis. “The strategy of AVOD players in recent years
was to acquire large volumes of content in order to increase their audiences. For example, in March 2022, Tubi’s US catalogue consisted of over 33,000 titles compared to Netflix’s catalogue of over 7,000 titles,” she explains. “However only 47% of Tubi’s catalogue was
exclusive, compared to 88% of Netflix’s catalogue.” Typically, non-exclusive content will be of lower-
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televisual.com Summer 2022
cost and lower-quality and therefore cheaper to buy, she points out. “But as AVOD usage has grown, we have seen the
“IF THE AMAZING AND OFTEN EXPENSIVE CONTENT THAT IS DRIVING THIS NEW GOLDEN AGE OF TELEVISION IS TO
CONTINUE, RELEVANT ADS ARE THE ONLY WAY TO FUND AND PRESERVE IT”
US players begin to invest in original programming with Roku producing the most originals so far with 103 originals available on its service in March 2022 due to its purchase of the original content catalogue produced for Quibi for an estimated $100m,” she continues. “AVOD platforms currently lack the investment
in content to directly compete with SVOD players. However, as SVOD prices continue to grow, we may see AVOD audiences increasing further, driving investment for original content. “This would mean that AVOD players would
not need to compete with SVOD platforms on a content basis but provide consumers with a cheaper alternative and wider library.” The combination of subscriptions hitting their
peak and viewers’ acceptance of ad-funded models is good news for advertisers. Premium video platforms – AVOD and the
broadcasters’ environment – are seen as the most attention-grabbing channels for 63% of CTV users, making them likely to generate the most impact for advertisers, who are already waking up to AVOD’s potential, according to FreeWheel.
Succession: Sky and HBO Max
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