March 8, 2022
With subscription streaming video platforms embracing ad-supported distribution, new data suggests upwards of 50% of Americans (171.5 million) could be streaming AVOD or free ad-supported streaming television (FAST) content by 2026.
In a report, eMarketer.com found that services like Disney+, Peacock, HBO Max and Paramount+, among others, have invested in ad-supported video channels (some locked behind subscriptions and others available for free). With few viewers loyal to just one streaming service, separate data from Ampere Analysis found that 25% of U.S. internet users use a mix of advertising-based and subscription-based video-on-demand services.
As streaming services are battling competition on multiple fronts, ad-supported tiers, with a softer entry price, are yet another option that allows competitors to appeal to both cost-conscious consumers and advertisers looking to reach audiences inside walled gardens.
Daniel Konstantinovic, author of the report, said that the angle for streaming services going forward is to replicate platforms such as Amazon Prime Channels or Verizon’s new +Play platform that puts their (Prime and telecom) subscribers in front of customer-friendly offerings like cheaper or free viewing channels, as well as major content releases.
“Verizon … is using +Play not only as a convenient subscription service management platform for customers, but also as a way to promote deals it has with streaming services like Disney+,” Konstantinovic wrote.