AVOD
Ad-Supported Video on Demand—free streaming services funded by advertising.
Definition
AVOD (Ad-Supported Video on Demand) platforms provide free access to content supported by advertising revenue rather than subscription fees. This model has grown as streaming competition intensified and consumers resisted additional subscription costs.
AVOD services range from free tiers on premium platforms to dedicated free streaming services with extensive content libraries.
Why It Matters
AVOD represents a significant growth area in streaming, expanding audiences beyond subscription-paying customers. The model creates different economic dynamics and content strategies than subscription services.
For content creators, AVOD provides additional distribution opportunities and revenue streams, particularly for library content.
Examples in Practice
Tubi, Pluto TV, and Freevee (formerly IMDb TV) are major AVOD services offering free, ad-supported streaming. Netflix, Disney+, and others have introduced cheaper ad-supported tiers combining SVOD and AVOD elements.
AVOD platforms often license content that subscription services don't prioritize, finding audiences for older films and series.