Is the advertising video on demand a blue ocean?

Question

I want to argue in my paper that the online video streaming market is incredibly saturated and that many alike follow the SVOD model. And thus my recommendation for the company is to adopt the blue ocean strategy following the AVOD model due to the significant growth ahead and the lack of competition currently.

Answer 1

I’d say the AVOD space definitely has the potential to be a blue ocean — especially compared to the crowded SVOD market. Right now, subscription streaming is packed with big names all fighting for the same audience, often by producing more and more original content. That’s expensive, and it’s hard to stand out when the consumer has so many nearly identical options.

AVOD, on the other hand, taps into a different value proposition: free (or low-cost) access supported by advertising. It appeals to budget-conscious viewers, it’s easier to scale globally without pricing barriers, and advertisers are increasingly shifting budgets toward connected TV and streaming platforms. The market growth forecasts for AVOD are strong, yet there aren’t nearly as many dominant players as in the SVOD space.

For a company looking to differentiate itself and avoid the head-to-head battles of subscription streaming, AVOD can open up that “blue ocean” — creating a new space where value is delivered differently and competition is minimal. The key would be building a platform with a great user experience so ads feel integrated rather than intrusive, keeping viewers engaged while still delivering strong ROI for advertisers.