AVOD is coming into its own after severaL years of struggle, as the companies attempted to raise money at a time when the entire industry seemed convinced that its future would revolve solely around SVOD.
As Walmart remains on the SVOD sidelines, the company is devoting more resources to Vudu's AVOD offering, because "we think we can do something that's unique in the world of AVOD," says Blanksteen, and work with advertisers on partnerships that will ultimately direct people to buy products at Walmart--allowing the company in essence to benefit twice.
AVOD is also capitalizing on the decision of Netflix and other SVOD services to shrink their library content as they focus on creating original series and movies.
The AVOD space began heating up last year, just as Viacom was souring on the prospect of joining the already-overstuffed SVOD marketplace.
Viacom spoke with many of the big AVOD players but was drawn to Pluto TV because of its linear-channel-based approach (its 113 channels are arranged like a TV grid, in addition to its VOD offerings).
Not surprisingly, other big media companies are now considering their own AVOD acquisitions.