VOD Services (Video on Demand) and streaming platforms using this technology have revolutionized the current market and become a considerable competition for traditional television and even… cinema.
Interestingly, they are divided into several types.
Today, we will discuss their cheapest, basic version, which is AVOD. What’s its definition? Why is it popular, and which platforms provide such service? You will find answers for all your questions in this article!
What is AVOD?
What is it? What are its characteristics? AVOD (Ad-Supported Video on Demand/Advertised Video on Demand) is a type of Video on Demand (VOD) service, which first and most important feature, is the price.
AVOD services allow users to watch content on the platform completely free or for a small fee, but as the name suggests, advertisements are shown during the broadcast of movies or programs.
How does AVOD differ from the currently most popular SVOD (Subscription Video on Demand)? The second of the mentioned forms provides users with access to content through a regularly paid subscription.
On the other hand, the equally popular TVOD (Transactional Video on Demand) service involves access to selected content on the platform for a one-time fee, which determines the length of this access.
Key AVOD Platforms
Although, when thinking about VOD platforms, the first ones that come to mind are Netflix or HBO Max, it’s worth knowing that these services operate on the SVOD principle mentioned earlier. However, when it comes to the most popular AVOD platforms, YouTube definitely counts among them.
Once a site with weird or funny cat videos, it is now a giant in the VOD market. As you have certainly noticed, as an ordinary user who does not have the luck of having a Premium subscription, watching videos on YT is often interrupted by ads. Well, that’s the price of free access to content!
Other popular AVOD platforms in the United States include Hulu, which, although it does not have a free plan, offers users the option to purchase a subscription for a very low amount ($7.99) and access all content but with ads.
Similarly, Amazon Prime works, where the monthly membership costs only $8.99, but it is possible to use a free plan for the first month and get a student discount.
When it comes to AVOD platforms where you can watch movies and series with ads for free in the United States, it’s worth mentioning Peacock and Pluto TV.
However, there are many such platforms, both American and offered by providers from other countries, including The Roku Channel, Tubi, Xumo, and Crackle. Some of them also provide free access to channels or TV programs.
For all the mentioned platforms, there is, of course, the possibility of purchasing one of the more expensive plans, which allow you to watch content without ads, in high quality. But you have to be prepared for a cost of a few dozens of dollars per month. By definition, all these platforms offer both AVOD and SVOD services, and often TVOD as well.
How AVOD Works?
As mentioned earlier, ads are key here. AVOD services operate similarly to other types of VOD platforms. You need to register on them and then choose the plan that suits you. Of course, if you are interested in the Ad-Supported Video on Demand service, this choice will fall on the free or the cheapest plan.
Watching content for free, however, will be interrupted by ads. They most frequently appear just before the video starts and several times during the video, pulling us away for a few seconds from our favourite film or series. Is it annoying? For some, yes, for others, especially those accustomed to traditional television and constantly displayed ads, this form is not bothersome at all.
This is also indicated by the popularity of the aforementioned platforms, whose users in the United States alone number in the tens and hundreds of millions (e.g., 239 million YouTube users).
What is the meaning of ads? The simplest explanation: displaying ads is compensation for the lack of fees from users. However, it works on the principle of a transaction between the provider and companies interested in advertising on their platform. They pay for the possibility of broadcasting their commercials, which brings them significant benefits.
They gain popularity, become recognizable, inform a wide audience about new products, and additionally earn from it, e.g., if a user is interested in the advertised product and simply buys it.
Advantages of AVOD
Certainly, the biggest advantage of AVOD services, from the users’ perspective, is the price (or lack thereof), which translates into huge interest in this form of watching VOD content.
Streaming platforms constantly compete, offering unique content, various plans, student discounts, and often even games (e.g., Netflix).
However, in times when we have to pay for almost everything, and the prices of even basic products are continuously soaring, the possibility of saving on entertainment seems like a very tempting option.
An additional advantage of AVOD services is that they usually offer their users access to both popular, new movies and series, and content from local television – e.g., long-broadcasted series that are no longer available live. An example of this is the Polish TVP VOD service, owned by a company that has been broadcasting public television channels for several decades.
Although many old, iconic series and movies are no longer broadcast on these channels, they can still be watched on the AVOD platform – digitally restored… and for free!
Challenges and Future Trends
While it might seem that streaming service users will do anything to enjoy unlimited access to their favourite content without ads… this is a mistaken assumption.
In the paid VOD market, the biggest players have already reached a glass ceiling, and currently, more people are cancelling subscriptions than joining the offered plans. Users are not convinced by the constantly rising prices, the providers’ policy changes, device limitations, disappearing of their favourite content from platforms, or new, often poor-quality movies and series.
Many people give up annual plans, purchasing subscriptions for 30 days occasionally and then catching up on potential backlogs, or searching for alternative, cheaper services where the same content is available.
For this reason, some platforms, like the Japanese Rakuten, currently available in many countries, recently introduced a free AVOD plan, which is hugely popular. Similar speculations also appear concerning popular Netflix, although it has never officially confirmed changing its formula. Certainly, however, other platforms will soon join the ranks of free AVOD services.
This form currently seems to be a very attractive option for providers, users, and advertisers. Ad-Supported Video on Demand thus brings many mutual benefits and may represent the future of VOD.