AVOD Boom: Why Ad - Supported Streaming Is Back in Demand


 

Author: Dipak Kumar Adhikari

Visit us : AscendOTT

 

For a while, the OTT world felt like it was all about subscriptions. Everyone wanted to be the "next Netflix", and viewers were expected to juggle multiple paid platforms just to watch a few shows they liked.

But suddenly, something interesting happened.
AVOD - Ad - Supported Video on Demand - made a huge comeback.
And honestly? It makes total sense.

Let's break down why AVOD is booming again, without the jargon and hype.

 

1. Viewers Are Tired of Paying for Everything

Let's be real: the average viewer today is overloaded with subscription costs. Between OTT apps, music platforms, cloud storage, gaming, and more, monthly expenses add up fast.

AVOD gives viewers a sigh of relief:

l No subscription needed

l Unlimited access to content

l A few ads in exchange for zero payment

And surprisingly, most viewers don't mind ads - as long as the content is free.

 

2. Advertisers Are Spending More on Digital

Brands are moving huge amounts of budget from TV to streaming platforms because OTT ads offer something TV never could:

l Precise targeting

l Measurable performance

l Personalized ad delivery

l Higher engagement rates

This shift means OTT platforms offering AVOD get a bigger slice of the ad money pie.

 

3. Perfect for Regional & Niche Markets

AVOD works brilliantly for:

l Regional content creators

l Independent filmmakers

l Local broadcasters

l Niche OTT platforms

Why? Because users in these segments are price - sensitive but highly engaged. Free content = more viewers. More viewers = more ad revenue. Simple maths.

 

4. More Viewers = More Monetization Opportunities

Here's what most people don't realize:

AVOD platforms often make more money than subscription - only platforms, because:

l Larger audience size

l Higher impressions

l Better ad targeting

l Multiple ad formats (pre - roll, mid - roll, interactive ads, banners, etc.)

When viewership scales, revenue scales too - sometimes even faster.

 

5. Hybrid OTT Models Are Taking Over

Most major players have already joined the AVOD game:

l Netflix (with ads)

l Disney+ Hotstar

l Amazon miniTV

l Sony LIV

l Pluto TV

l Tubi

The hybrid model - SVOD + AVOD - is now the new industry standard. It allows users to choose what suits them: pay for premium or watch free with ads.

This flexibility is exactly what the audience wants.

 

6. Great for New OTT Platforms Just Starting Out

Launching a new OTT platform with only paid plans is tough today. Viewers rarely subscribe unless they already trust the brand.

AVOD solves this problem:

l Instant audience growth

l No barrier to entry

l Easy to test content performance

l Faster brand visibility

Many new OTT platforms use AVOD first, then introduce premium paid plans later when their audience grows.

The Bottom Line

AVOD is booming because it brings back something OTT had lost over the years - accessibility.
Free content + relevant ads = a win - win situation for viewers, creators, and advertisers.

As subscription fatigue rises and advertisers pump more money into streaming, AVOD is becoming one of the most profitable and scalable OTT models out there.

And the best part?
It's just getting started.

 

 

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