2020 will be the year AVoD platforms will begin to build scale and roll out internationally according to Ampere Analysis.
The company cites the trend of SVoD companies gradually replacing their older original content, which is now being embraced by AVoD streamers.
Ampere suggests the proportion of Netflix’s catalogue that is over five years old fell from 50 per cent in September 2015 to 35 per cent in September 2019—a trend Ampere predicts will continue across the sector. In the meantime, AVoD players average nearly 80 per cent of their catalogues at five years old by title count. This demand for older content not only provides a new market for licensing deep archive, but also offers a boon for distributors and sales agents, said Ampere.
The rise of AVoD will also lead to in increase in online video advertising predicted Ampere, as platforms spread globally in 2020. Ampere expects the rush to AVoD to be “supercharged” by some of the studio direct models such as Disney’s Hulu and NBC Universal’s Peacock which are expected to adopt a hybrid SVoD/AVoD model.
Guy Bisson, director at Ampere Analysis said: “AVoD is coming, and it’s going to make its mark on the Video on Demand landscape rapidly. Its impact will be felt not just by the entertainment industry, but by advertising too as the shift that has already disrupted the subscription television market sweeps across the free-to-air sector. AVoD services are treading a well-trodden path with an early reliance on older content, but as their market position grows, we can expect them to begin acquiring newer content and even moving into original production activity as they battle for eyeballs in an increasingly crowded market.”