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What It Means to Activate an AVOD Strategy

Published on 03/03/2026

What It Means to Activate an AVOD Strategy

 

Overall, the entire video streaming market (across all monetization models) will be worth over USD 212 billion in 2026, growing compared to 2025, driven by the expansion of 5G technology, the adoption of smart TVs, and increased cross-device consumption.

The growth of AVOD is driven by:

  • Increasing demand for free ad-supported content
  • Targeted advertising investments on CTV platforms
  • Strong growth of smart TVs and connected devices

These figures show a strong expansion of the AVOD model, with significant opportunities for those entering the market today with an advertising-optimized channel.

Trend di Crescita: AVOD vs SVOD (2024-2026)

Recent industry data shows:

In 2024, the AVOD market grew 39% year over year, reaching roughly USD 14.3 billion across major streaming platforms

More than 71% of new streaming subscribers are estimated to choose ad-supported plans

This indicates that AVOD is not only attracting broader audiences but is becoming a primary growth engine for OTT services, while purely subscription-based models (SVOD) are expanding more slowly.

Casi Studio di Mercato: Perché i Grandi Player Puntano su AVOD (E Cosa Significa per Te)

Major global operators have demonstrated one clear point: AVOD is not a secondary model, but a structural growth lever.

Prime Video (Amazon)
With the introduction of advertising, Amazon transformed an already established user base into a new high-margin revenue source. Advertising became an economic multiplier built on an existing infrastructure.

Netflix (Ad Tier)
Netflix introduced an ad-supported plan to expand penetration among price-sensitive segments without sacrificing its premium positioning. The result: greater accessibility and a new revenue stream.

Disney+
Disney adopted a hybrid model to balance user growth and advertising monetization, demonstrating that subscriptions and advertising can strategically coexist.

Roku Channel
Roku built an ecosystem where advertising is the primary revenue engine. Hardware, distribution and content become tools that feed a scalable advertising machine.

Pluto TV (Paramount)
Pluto TV demonstrated that the FAST model can generate significant value through free linear channels supported by advertising and sponsorships.

What Do All These Players Have in Common?

It is not simply about “adding advertising.”
They all have:

Proprietary infrastructure

Direct control of monetization

The ability to integrate hybrid models

A long-term strategy, not an opportunistic one

The difference is not the AVOD model itself.
It is the architecture that supports it.

Where Vodevolution Positions Itself

Vodevolution was built with the same strategic mindset as the major players.

Not to offer a simple SaaS service, but to build a proprietary infrastructure fully controlled by the client.

You are not dependent on a closed ecosystem.
You do not automatically share your advertising margins.
You are not locked into a single business model.
You do not need to change platforms as your strategy evolves.

The principle is simple.

Major operators control their infrastructure because they know that this is where the real value lies.
Vodevolution enables broadcasters, media companies and vertical brands to adopt the same philosophy, at a scale appropriate to their business.

Do not copy the model of the big players. Adopt their mindset.

Amazon, Netflix, Roku and Pluto did not build value simply by selling subscriptions or advertising.
They built value by controlling the ecosystem.

Vodevolution positions itself as a partner for organizations that want to:

Build a proprietary media asset
Maintain strategic control
Scale without depending on third-party platforms
Transform AVOD into a structural growth driver

It is not about “having advertising.”
It is about controlling the infrastructure that makes it profitable.

Is AVOD better than SVOD?

There is no universally better model. It depends on the strategy.
AVOD allows platforms to rapidly expand their audience through free access while monetizing through advertising, while SVOD generates recurring revenue through subscriptions. Today many platforms adopt a hybrid model (AVOD + SVOD) to maximize both reach and margins.

How much can an AVOD channel generate?

The revenue of an AVOD channel depends on variables such as:

Number of active users
Average viewing time
Audience segmentation
Direct + programmatic strategy
eCPM optimization

With a well-designed infrastructure, AVOD can transform every minute of viewing into monetizable inventory, creating scalable revenue over time.

Can AVOD and FAST be integrated within the same platform?

Yes. A modern platform can combine:

Free video on demand with advertising (AVOD)
Free linear channels (FAST)
Optional premium ad-free subscription tiers

This multi-model architecture enables greater strategic flexibility and better revenue diversification.

Why is it important to control the AVOD infrastructure?

The value in the AVOD model is not only in advertising, but in controlling the ecosystem.

Why AVOD Is a Structural Strategy in the OTT Market

AVOD is not a temporary trend but a structural evolution of the streaming market.
The growth of ad-supported models, the expansion of Connected TV and the increase in digital advertising investments are redefining how content is distributed and monetized.

Launching an OTT AVOD channel means positioning strategically within this transformation, turning audience into sustainable economic value.

This translates into:

Greater accessibility and audience expansion without economic barriers
More advanced advertising opportunities and inventory monetization with competitive CPMs
Diversification of revenue streams
Scalable and sustainable growth over time

AVOD is not simply an alternative to subscriptions.
It is a model that allows companies to build a resilient media ecosystem capable of adapting to market evolution and generating long-term value.

When designed with a solid and proprietary infrastructure, it becomes not only a revenue source but a true strategic asset for your video business.

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