What Is AVOD? Ad-Supported Video on Demand, Explained
What is AVOD? Ad-supported video on demand lets viewers stream free in exchange for ads. Learn how AVOD works, how it differs from FAST, and the economics.
AVOD (ad-supported video on demand) is a streaming model where viewers watch video for free, or at a reduced price, and advertising pays for the content. The viewer picks a specific title and presses play; ads run before or during it. Tubi, the free tiers of major streamers, and YouTube are all AVOD services. AVOD sits opposite SVOD (subscription video on demand), where the viewer pays a monthly fee to avoid ads.
The model has moved from fallback to default. Two-thirds of US viewers say they would rather save money than avoid ads (Hub Entertainment Research, 2025), and the biggest free services now post subscription-scale audiences. This guide defines AVOD, separates it from FAST, and walks through the economics.
How does AVOD work?
The mechanics are a three-way trade between viewer, service, and advertiser:
- The viewer chooses a title on demand. A specific movie or episode, started on request. That on-demand choice is the "VOD" in AVOD.
- The service inserts ads. A pre-roll before playback, plus mid-roll breaks inside longer titles. Most modern services stitch ads into the stream server-side, a technique called SSAI.
- Advertisers pay per impression. Revenue is quoted as CPM, the price per thousand ad views. The service keeps a share and funds content with the rest.
The viewer's cost is time, not money. FAST ad loads typically run 4 to 8 minutes per hour, versus roughly 12 to 16 on cable, and most AVOD services sit in a similar range.
AVOD vs FAST: what's the difference?
The two get merged in headlines, but the split is simple: AVOD is on demand, FAST is linear. Both are free and ad-supported. The difference is who decides what plays next.
| AVOD | FAST | |
|---|---|---|
| What plays | A title the viewer picks | A scheduled 24/7 channel |
| Who controls the order | The viewer | The channel programmer |
| Viewing mode | Lean-forward: browse, choose, play | Lean-back: tune in, it is already on |
| Guide | A content library or catalog | An electronic program guide (EPG) |
| Analogy | A free video store | Free cable channels |
Many services run both models in one app. Tubi's library is AVOD, and its live channels are FAST. Pluto TV leads with FAST channels and offers an on-demand section beside them. The full three-way comparison, including subscriptions, is in FAST vs AVOD vs SVOD.
Who are the big AVOD players?
Scale is the clearest proof the model works. Tubi passed 100 million monthly active users and served over 1 billion viewing hours in May 2025 (Tubi/Fox). YouTube, the largest ad-supported video service of all, took a record 12.5 percent of all US TV viewing in May 2025 (Nielsen). Samsung TV Plus entered 2026 with more than 100 million monthly active users across its free channels and on-demand catalog (Samsung).
Subscription streamers joined rather than fought the trend. Netflix, Disney+, Max, and Peacock all sell cheaper ad-supported tiers, which are AVOD by mechanics even though a small fee remains. Sourced figures for the whole sector live in our FAST industry statistics hub.
The economics: how does free video make money?
AVOD revenue is a function of three numbers: audience hours, ads per hour, and CPM. A service that serves 1 million ad impressions at a $20 CPM books $20,000. Programmatic CPM benchmarks for free streaming cluster around $15 to $25, though treat those as vendor benchmarks rather than audited measurement.
For content owners, AVOD pays through revenue share: the service sells the ads and passes a percentage to the rights holder. That is also how creator platforms work. On Vidiyo, creators stream free and earn an ad revenue share, plus tips and gifts on live streams, paid episode unlocks, and shoppable product tags. You can model channel-level numbers with the free FAST revenue calculator.
The advertiser side keeps growing too: US connected-TV ad spend hit $33.35 billion in 2025, with roughly 14 percent growth projected for 2026 (eMarketer). More jargon from this world is defined in the FAST TV glossary.
Quick answers
Is AVOD free? Usually. Pure AVOD services like Tubi cost nothing. Some streamers also sell reduced-price ad-supported tiers, which use the same ad-funded mechanics with a small fee on top.
Is YouTube AVOD? Yes. YouTube is the largest AVOD service: free on-demand video funded by ads, with an optional paid tier to remove them.
What is the difference between AVOD and SVOD? AVOD is funded by ads and free or cheap to watch. SVOD is funded by monthly subscriptions and typically ad-free. Many services now offer both tiers.
Is AVOD the same as FAST? No. Both are free and ad-supported, but AVOD is on-demand viewing you pick title by title, while FAST is scheduled linear channels you tune into.
What's next
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