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Whether free, like YouTube, or paid, like sub OTT (a term we use interchangeably with SVOD鈥�subscription video-on-demand), all trends are still pointing in the right direction. However, growth is nowhere close to what it once was. A multidecade slog toward domination awaits. YouTube is already everywhere, and now some advanced economies are approaching sub OTT saturation as well.

That figure nearly matches the total for traditional TV viewers (232.2 million) and exceeds the total for subscription OTT (sub OTT) viewers (226.4 million). Digital audio is so mainstream that listener growth will inevitably be slow going forward. Any media that achieves widespread penetration will eventually hit a user growth wall, as digital audio did in 2021.

BVOD will usurp subscription video-on-demand (SVOD) next year. The allure of 鈥渇ree鈥� on-demand services means the broadcasters鈥� combined user base will overtake that of Netflix, Amazon, Disney+, et al. next year鈥�42.1 million versus 41.2 million, respectively. Sub OTT video platforms are feeling the pinch.

Nearly 60% of OTA households that don鈥檛 subscribe to a subscription video on demand (SVOD) service, for example, are households of one person, while 45% of OTA households that subscribe to an SVOD service but don鈥檛 use a vMVPD are home to three or more people. From an income perspective, however, OTA households that subscribe to an SVOD service and use a vMVPD are the biggest earners.

Paramount+ and ESPN+ will set the pace among subscription video-on-demand (SVOD) services. Paramount+鈥檚 ad-supported Essential plan is now free for Walmart+ subscribers and free for one year for T-Mobile subscribers. The platform is also incorporating Showtime鈥檚 content into one bundle, which will shift a cohort of new viewers in its direction.

That鈥檚 far better than anticipated increases for most subscription video-on-demand (SVOD) providers, such as Disney+ (45.0%), Peacock (25.3%), Max (13.3%), and Paramount+ (10.3%). Hulu won鈥檛 experience much growth in its ad tier due to its relative market maturity. Amazon Prime Video, having undergone a significant one-time transformation, will face limited room for ad viewer growth after 2024.

Our take: With two consecutive quarters of streaming profitability, Paramount+ is holding its own as the fourth-largest global SVOD service. Paramount鈥檚 focus on cost-cutting will continue to shape its operational strategy, especially as the company navigates lower earnings in other areas, like traditional TV and film.

At the subscription video-on-demand (SVOD) end of the scale, cheaper ad-supported tiers will become ever-more prevalent. According to Netflix鈥檚 latest earnings call, 30% of new sign-ups choose the ad-supported tier in countries where it鈥檚 available; this is less than a year after its introduction. Meanwhile, at the free and broadcast end of the scale, FAST services are proving increasingly popular.

In 2023, an estimated one-quarter of US premium subscription video-on-demand (SVOD) customers are on ad-supported plans, according to Antenna. That percentage could easily rise to one-third within a year.

This rich landscape, which gives advertisers a wealth of opportunities to reach young, engaged viewers, comprises:. subscription video-on-demand (SVOD) services, which include standalone ones like Netflix, those owned by TV network groups, and ones operated by tech firms like Amazon and Apple. free ad-supported streaming TV (FAST) services like Tubi and Pluto TV, which are owned by TV networks (Fox and

Those gains dwarfed those of subscription OTT viewers, and similar trend lines will continue in 2023 and 2024 before gains start to even out across service categories in 2025. Consumers agree: The best things in life are free.

Consumption habits evolve: Adult subscription video-on-demand (SVOD) viewers spend half of their streaming TV time watching apps on smart TVs鈥攁n increase from 31% in 2015, per Aluma Insights research. 64% of broadband households now have a smart TV in their living room.

But as these service providers continue to make inroads, the number of subscription OTT viewers will keep on rising in Latin America. For now, consumers are more inclined to pay for an ad-free streaming experience (i.e., subscription video-on-demand, or SVOD) than one with ads (i.e., ad-supported video-on-demand, or AVOD). Subscription OTT penetration is low but poised for growth.

Premium content is generally reserved for subscription video-on-demand (SVOD) services, while FASTs tend to offer older licensed reruns that viewers are less likely to be glued to week after week. Distracted viewing has always been a part of TV, Benes said. 鈥淚t鈥檚 what a lot of linear TV business models have been built on in the past.鈥�.

Consumers鈥� growing acceptance of ads on streaming services鈥攁nd increased access to sports content鈥攕uggests that many are beginning to view subscription OTT services as the de facto access point for video entertainment.

Younger audiences (ages 13 to 34) are leading the shift to digital, with 24% consuming sports via subscription video-on-demand (SVOD), compared with just 16% for those 55 and older. The worldwide media rights value of all sports properties is projected to rise from $51.21 billion in 2019 to $63.74 billion by 2026, highlighting the escalating importance and investment in live sports content.

This includes the myriad forms of internet-based content delivery, such as subscription video-on-demand (SVOD), FAST, and AVOD, consumed on smartphones, tablets, or connected devices (like smart TVs and streaming sticks). Smartphones are the dominant digital video viewing device.

To view the time spent with subscription OTT forecast, click here, and to view the time spent with social media forecast, click here. Subscription revenues far outstrip ad revenues for digital audio. Digital audio subscription revenues crossed the $10 billion mark last year and are on track for $15 billion by the end of our forecast period in 2026.

鈥淭he coalescing of streaming service CPMs reflects a historical pattern of subscription video on demand platforms (SVODs) aiming high when they launch ad tiers, only to lower prices after buyers balk at the sticker shock,鈥� said our analyst Paul Verna. 鈥淥ther services including Warner Bros. Discovery鈥檚 HBO Max followed similar patterns.鈥�.

Amazon Prime Video will have 130.4 million US ad-supported viewers this year, accounting for 57.6% of subscription OTT video viewers, per our February 2024 forecast. Most of YouTube鈥檚 241.8 million US viewers this year will watch with ads, making it the only streaming service with more ad-supported viewers than Amazon Prime Video.

By contrast, time spent on SVOD in the region fell 2% YoY in H1 2023. OTT players are counting on exclusive and high-quality content from South Korea, the US, and local producers to fend off competition. Korean dramas captured 40% of SVOD viewership in Southeast Asia in H1 2023, per the MPA report.

Our take: Although an increasing number of US children aged 2 to 12 prefer YouTube (excluding YouTube Shorts) over subscription video-on-demand (SVOD) services such as Netflix, the two are neck and neck in time spent, according to a July 2024 report by Precise TV.

Subscription OTT video is becoming a bigger part of people鈥檚 media diet. High use on platforms like Netflix and Hulu are contributing to the 1 hour and 49 minutes (1:49) that people will spend watching subscription OTT this year, per our forecast. Both of those platforms now have ads, as do other large players like Amazon Prime Video, Max, and Disney+.

Subscription OTT video viewers will make up 75.8% of US internet users and 84.6% of digital video viewers this year, according to our February 2024 forecast. Because the market is already so saturated, 鈥渢here aren鈥檛 a whole lot of new people coming into streaming,鈥� Benes said. That鈥檚 why growth in time spent is more important.

Ad-supported streaming to gain triple the viewers of subscription video this year. Who stands to lose with Prime Video鈥檚 new ads? More streaming viewers are adopting ad tiers. 4 ways to enhance your CTV ad creative and avoid consumer fatigue. Note: Data was provided to Insider Intelligence by DISQO.