SEÑAL NEWS | RESEARCH WEEK #37

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THE LATEST BRIGHT SPOT, AVOD BUSINESS

WEEK #37 ∙ SEPTEMBER 2020

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THE LATEST BRIGHT SPOT, AVOD BUSINESS #WEEK 37 ∙ SEPTEMBER 2020

Ad-supported video-on-demand (AVOD) platforms experienced strong growth in ad revenues in Q2 2020, making the AVOD space a bright spot in the ad market amid the pandemic.

AVOD REVENUE GROWTH

BY COUNTRY

MAIN COUNTRIES FOR AVOD EXPENDITURE

AVOD revenue, US$ billions

(US$ million)

China

USA

UK

Japan

Germany

Others

46.6

50

RANKING

COUNTRY

2019

1

USA

2

China

3

United Kingdom

10

4

Japan

0

5

India

40 30 20

15.1

11.6

2015

23.8

19.5

2016

2017

2018

2023

Source: Digital TV Research &, WARC Global Ad Trends

Social

7%

2%

10%

36%

Network

MVPD/vMVPD

10%

Gaming

14% SVOD

21% AVOD

2025

7,998

USA

6,777

2

China

9,177

1,620

3

Japan

3,228

1,611

4

United Kingdom

2,823

632

5

India

AVOD is forecasted to be the fastest-growing source of video revenue between 2019 and 2024.

This is being driven by a decline in live TV viewing, with a corresponding increase in viewing via connected devices. 40% of all streaming time is spent watching AVOD content.

Source: Nielsen

724,245

1,707

AVOD VS SVOD REACH GROWTH (millions of households) Non-Ad Supported

Ad Supported

62.4 59.6

58.5 53.7

Jan 2020

Apr 2020

Source: Comscore

ADOPTION OF LINEAR AVOD SERVICES IS GROWING YoY

+23.9% YoY

18.5%

47%

Hulu (with ads)

16.2% 13%

Roku 2018

2019

As consumer grow tired of paying for subscription services, linear AVOD services are on the rise.

Pluto TV (+4.5 percent), Tubi TV (23.9 percent) and Philo TV (14.3 percent) all gained viewers year over year.

Pluto TV

AVOD SERVICES PENETRATION IN THE UNITED STATES Percentage of US ad-supported video on-demand service users who use the platform.

+4.5% 17.7%

COUNTRY

1

Source: Digital TV Research

STREAMING CONSUMPTION MARKET SHARE IN THE US Other

RANKING

Tubi TV

Source: Nielsen

Across five of the major ad-supported streaming platforms (Roku, Hulu, Peacock, Pluto TV and Tubi), ad revenues jumped 31% year-over-year to reach $849 million last quarter, according to new estimates from MoffettNathanson Research.

Pluto TV Crackle Tubi CBS All Access (with ads) Vudu IMDb TV Popcornflix Crunchyroll (with ads) Xumo Stirr Source: Business Insider Intelligence

30% 27% 22% 18% 17% 15% 11% 9% 8% 6% 5%