The US Internet TV market is a booming landscape and is expected to grow Up to 60% within the next five years, In return, the earnings of OTT TV episodes and movies will reach $94 billion in 2026-Nearly double the $49 billion generated in 2020. Media companies are currently in the middle of an incredibly competitive, and fragmented, market.
There is a risk that media companies may be left behind if they are not quick enough to react to the changing landscape. However, this is also one of the most exciting periods for the industry, and its potential shows no signs of slowing down, making it a good time to explore new avenues of growth and broaden horizons in the sector.
Owned and operated (O&O) services alone are not enough for media companies to be successful in today’s streaming environment. To achieve growth, media companies must ensure that they integrate an effective business strategy that puts diversification at the heart of it. If executed properly, these strategies will unlock greater audience reach and monetization that will empower them to thrive now and in the future.
In this article, I’ll outline how to execute a hybrid approach and key areas of thought for media companies looking to get a piece of the growing Internet TV market.
Free ad-supported TV (FAST) linear services have grown in popularity in recent years. We are now seeing FAST being integrated within television interfaces, and made widely available on the Connected TV (CTV) App Store.
Fast linear channel distribution and monetization are an important hub for diversification. They retain the lean-back benefits of traditional linear TVs, while enabling valuable new digital advertising opportunities. Through FAST, content providers can unleash the ability to algorithmically program channels using AI to suit audience tastes and leverage programmatic advertising platforms to maximize the value of ad spots. Channels can also be launched quickly and content can be fine-tuned in real time to optimize viewership. When customer demand fluctuates, FAST channels can be scaled up and down. This is a significant advantage to help keep content providers in check.
In addition, SVOD services should consider offering various payment options – perhaps lower fees in exchange for some form of advertising – to help meet the needs of the audience. This is a hot topic in the industry, of course, enabling companies to generate new advertising revenue that previously was not part of the business model. A reduction in price gives cost-conscious customers more choices, potentially attracting more customers over the long term.
To support this, ad-based video on demand (AVOD) is also an attractive way. Like FAST, AVOD has also enjoyed significant growth. AVOD audience in the US expected to reach 165 million in 2025 (opens in new tab) And the format can be a great distribution tool for a media company’s content library. AVOD enables substantial advertising revenue business, helps companies become more competitive in the marketplace, and funnels O&O services. AVOD is helping to fill the void between subscription services and the ad-free experience provided by Linear TV which gives it the best of both worlds.
AVOD is now a major player in the Internet TV market and brands are pouring money into these services for their user-specific focus: the low number of commercials versus the high value of commercial awareness among viewers. AVOD’s ability to track user interactions can help make ads more trackable and easier to determine their success. These advanced targeting capabilities are exactly what the market is looking for today – both advertisers and consumers.
If implemented successfully, AVOD will certainly allow content to thrive in the streaming age, while ensuring that media companies focus on content and their technology stack.
Ensuring the Right Toolset
To help build and nurture the thriving content communities in our industry, streaming providers must ensure they provide the flexibility to support the multiple business models that support our market and its ever-fluctuating landscape. reflect. The solutions should boast capabilities including high quality OTT application deployment and dynamic playlisting for VOD. Also considered should be the inclusion of support for AVOD and SVOD, two services that are rapidly changing the way video is consumed and monetized. However, SVOD requires one workflow, AVOD requires another, FAST channels require another, and multiple potential syndication partners require more.
It is important to understand that, to stay ahead of the curve, media companies need the right cross-platform technology to support hybrid business models and multi-partner distribution to execute a successful distribution and monetization strategy.
With this in mind, streaming providers must ensure that they assemble a comprehensive technology stack of solutions to reach their full audience engagement and monetization potential. But at the same time, they need an efficient way of working that avoids the complexities of dealing with multiple vendors at once, which makes the workflow harder to manage.
But, if they do achieve it, there is a great opportunity to reach new audiences, develop more revenue streams, and pave the way for long-term success.