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Latest YouTube Report a Clear Reminder of the Importance of AVOD

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YouTube continues to be the ultimate AVOD service, highlighting just how profitable the business model can be. While also acting as reinforcement to a market that’s now seeing a rise in AVOD strategies.

AVOD is ad-supported video, and while some services take more of a hybrid approach by combining AVOD and SVOD strategies, at its core the AVOD model relies on being free. The rise of free TV services has increased massively over the last year and that looks set to continue in 2020, and throughout.

Recent data from App Annie indicates that when it comes to streaming Android apps, YouTube was – by some margin – the most-streamed video app of 2019. In fact, of the top 5 time-spent video streaming Android apps, YouTube accounted for “7 out of every 10 minutes.”

YouTube free streaming dominated 2019
Source: App Annie

While most won’t be surprised by that figure, the rest of the ‘top 5’ was made up of Tencent News, Tencent Video, iQiyi, and Xigua Video. All of which have had their viewing time heavily fueled by views in China – the same place where YouTube is inaccessible. A point that highlights even with the increasing impact of China’s domestic smartphone market, YouTube TV is not only remaining ahead of the pack, but absolutely dominating streaming hours on Android.

AVOD is streaming’s new fashion accessory

Prior to the release of this data, Google announced its latest earnings report and for the first time, confirmed more than $15 billion in YouTube ad revenue. Likewise, Tubi recently released its latest figures, confirming the free streaming service now has more than 25 million monthly users. Both instances only further highlight the impact of the AVOD model and the wide appeal to all streamers of free content. This is an area that has particularly picked up pace recently with many companies. including Sling TV, NBC, and Redbox looking to cash in on the ad-supported format.

Of course, an AVOD strategy alone is not necessarily enough to make it in this industry, with content continuing to remain a key driver. While that’s something YouTube has in excess (considering the rate of uploads it sees every minute), as App Annie points out, one of the other content advantages YouTube has over the competition is its mixture of short and long-from content. A balance that ensures the service appeals to all types of viewers and preferences.

This is a major difference compared to the other services which typically try to market themselves as one or the other. Quibi is the latest example, with the service hoping to become the go-to option for short-form videos in the future.

Source: App Annie

John Finn
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John Finn

By John Finn

John Finn is the Founder and Editor of Streaming Better, a platform created in 2019 to help consumers navigate the complicated live TV streaming and subscription service market.

John has been covering technology for various online publications since 2014. After originally covering the wider tech industry as a writer and editor, John now spends his time focusing on the emerging video-streaming market, including live TV streaming, SVOD, AVOD, FAST, and TVOD services.

In a bid to keep up to date on the industry, John actively subscribes to multiple streaming services at the same time. However, John continues to advocate that the best approach for consumers is to rotate between streaming services as needed.

A Psychology graduate from England, who now lives in the US, John previously worked in the aviation industry as an airline reviewer. While reviewing airlines isn't quite the same as reviewing devices and streaming services, John brings the same analytical eye to all of his reviews and industry analysis, along with a special emphasis on what's best for the consumer.

Connect with John
X: @J_Finns

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