蘑菇AV

Streaming services are increasingly rolling out promotions and discounts to drive ad-supported sign-ups鈥攕erving nearly half (49%) of subscription video-on-demand (SVOD) subscribers who view them as a good way to save money, per Circana. 鈥淭here will still be a big contingent, probably a third of viewers or more, who will opt to pay more to avoid ads though,鈥� Benes said.

Being the original subscription video-on-demand (SVOD) service has given Netflix the advantage of familiarity over its global rivals. In Australia, for example, Netflix accounted for 30% of SVOD subscribers, but half of the country鈥檚 streaming minutes, according to Media Partners Asia (MPA).

OTT subscription revenue growth will slow to single digits next year, as streaming reaches a saturation point, with subscription OTT viewers accounting for nearly three-quarters (73.8%) of internet users this year. Use this chart:. Evaluate ad budget between streaming and linear. Demonstrate the trend toward streaming. More like this:.

So it's SVOD? Ross Benes:. Subscription OTT, SVOD. Basically, there's many acronyms in this space, unfortunately. Marcus Johnson:. Yeah. Okay. So it's on that side of the bracket, if you will. It's on the streaming side, under streaming AVOD and SVOD, and under SVOD, you've got the ad-supported and the ad-free.

Netflix鈥檚 US audience is saturated, as the service will reach more than three-fourths of US subscription OTT users this year. To generate more revenues from its consumers, Netflix has restricted password-sharing and continued to raise subscription fees. Netflix also adopted advertising after avoiding it for years.

In June 2023, one-fourth of all subscription video sign-ups were ad-supported, up from nearly one-fifth in 2021, according to Antenna. Advertising plans bring in more revenues per user than ad-free plans, which make them attractive to streaming services seeking profitability. One way to incentivize advertising sign-ups is to expand the price difference between ad-free and ad-supported plans.

So the amount of time that people are spending in front of video is a huge drop in TV time, increase in subscription OTT, fast channels, whatever, all the streaming kind of things. And it balances out and we're all spending about as much time in front of the big screen as we used to. Marcus Johnson:. Okay. Oscar Orozco:. And consider audio too.

More Chart of the Day:. 8/4 - Programmatic video keeps growing. 8/3 - SVOD success. 8/2 - Meta over YouTube? 8/1 - Keeping it dynamic. 7/31 - Streaming showdown.

More Chart of the Day:. 8/8 - Saved by the bell. 8/7 - Generation AI. 8/4 - Programmatic video keeps growing. 8/3 - SVOD success. 8/2 - Meta over YouTube?

AVOD services will add 13.3 million US viewers this year, more than triple the 4.3 million that subscription OTT services will add, according to our March forecast. Major services like Disney+ and Netflix have also launched advertising subscription tiers, spurring brand interest. Our take: Advertising may be pulling out of a cold season, but growth still won鈥檛 return to pandemic rates soon.

More Chart of the Day:. 8/3 - SVOD success. 8/2 - Meta over YouTube? 8/1 - Keeping it dynamic. 7/31 - Streaming showdown. 7/28 - Price is key for D2C.

The high level of subscription OTT video viewing鈥攁bout 1:30 per day鈥攍imits ad opportunities, although CTVs host a range of programming with ads, including:. Free ad-supported streaming TV (FAST), such as Pluto TV and Tubi. Ad-supported video-on-demand (AVOD), such as The Roku Channel and ad-supported versions of subscription services like Netflix and Disney+.

Subscription OTT connected TV platform ad spending will grow 40.5% this year to reach $7.54 billion, per our March forecast. On the retail side, paid retail membership fee revenues will hit $35.12 billion this year, a 6.5% increase from 2022, per our March forecast. Use this chart:. Identify customer attitudes around subscription services. Build out your subscription service to attract consumers.

More Chart of the Day:. 8/9 - Retail ecommerce sales near milestone. 8/8 - Saved by the bell. 8/7 - Generation AI. 8/4 - Programmatic video keeps growing. 8/3 - SVOD success. Methodology: Data is from a July 2023 CivicScience study as cited in company blog.

And Netflix has entrenched itself as a household necessity, with one of the most diverse libraries among major subscription video-on-demand platforms. These platforms are the best deal for many Hispanic households. Only 40% of Hispanic consumers cite language as a 鈥渧ery important鈥� factor when streaming, according to Nielsen. In comparison, 70% of non-Hispanic consumers feel the same way.

-based subscription video services (Netflix, Disney+, Hulu, Prime Video, Max, Apple TV+, Paramount+ and Peacock) and major broadcast and cable networks during January 2020 and August 2023. Luminate provided data on the networks' content output, including premiere dates, season counts, genres and renewal status, which was analyzed by the Variety Intelligence Platform.

More Chart of the Day:. 8/7 - Generation AI. 8/4 - Programmatic video keeps growing. 8/3 - SVOD success. 8/2 - Meta over YouTube? 8/1 - Keeping it dynamic. Methodology: Data is from the July 2023 National Retail Federation (NRF) "2023 Back-to-School Spending Survey" as cited by Martech Zone. 7,843 US consumers ages 18+ were surveyed during June 30-July 8, 2023.

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.

While SVOD services like Netflix, Prime Video, Disney+, and Apple TV+ have captured audiences for years, the launch of AVOD options like PlutoTV (December 2022 release in Canada) and tiered pricing from SVODs has expanded addressable audiences for advertisers. Once blocked from SVOD鈥檚 captive viewership, advertisers can now use ad units targeting a broader selection of video audiences.

That change gave Prime Video the largest audience for an ad-supported subscription video service in the US, but it will take more than flipping the switch to ensure success. Prime Video, with its treasure trove of user data from Amazon, competitive CPMs, and steep user penetration, is an enticing prospect for advertisers. But there are still headwinds.

These OTT options include subscription video-on-demand and ad-supported video-on-demand. CTV formats, which include smart TVs and streaming sticks, are well above other access devices for streaming viewership in Canada. Among the total internet user population, smart TV penetration is at 55.3% in Canada, according to GWI polling from H1 2023.

Our September 2023 forecast shows 72.3% of subscription OTT video viewers will watch Prime Video in 2024, while 76.7% will watch Netflix. That puts Amazon on par with Netflix in terms of viewership. 3. Amazon has a wealth of retail media data. Amazon accounts for 74.2% of all US retail media ad spend, according to our November 2023 forecast.

More people will watch YouTube than subscription OTT, ad-supported video on-demand, or free ad-supported streaming TV. YouTube was the second largest TV distributor by watch time in June 2024, behind only The Walt Disney Company, according to Nielsen. 3. YouTube is the biggest smartphone app by users.

OTT advertising refers to ads delivered over the internet independently of a traditional pay TV service that appears on any screen, including subscription video-on-demand, free ad-supported streaming TV, and virtual multichannel programming distributors. This can include ads served on mobile, desktop, and tablet devices, as well as smart TVs.

With Amazon defaulting Prime Video viewers into its ad-supported tier, it鈥檚 clear the days of ad-free subscription video are waning. 鈥淲ith Netflix, Disney+, and now Amazon including ads, the pendulum has completely swung, and streamers are essentially forcing advertising upon CTV consumers,鈥� Willens said. Winner: Amazon. Retail media competitors vs. Amazon.