May 01, 2019
Trends in consumer behavior hints at a bright future for free-streaming television.
The new era of free-streaming TV is here and it may be the answer to growing consumer subscription fatigue. According to the World Advertising Research Center, growth in ad spend on ad-based video-on-demand (AVOD) services is outpacing dollars spent on other media, and it’s projected to be worth $47 billion of the OTT market by 2023 — almost double its 2018 value.
Viacom joined the burgeoning field of AVOD with its recent acquisition of Pluto TV for $340 million. The platform offers 100+ channels spanning entertainment, sports, news, lifestyle, comedy, cartoons, gaming and trending digital series, as well as thousands of on-demand movies and TV shows.
It also boasts more than 15 million monthly active users, more than half of whom are on connected TVs that allow for high-quality addressable advertising impressions for Viacom’s Advanced Marketing Solutions division. And, with the largest AVOD audience segment being 18- to 34-year-old adults, there’s greater opportunity to directly reach Viacom’s core audience.
For more context, here’s what the data indicates about the opportunity of AVOD: