蘑菇AV

In 2024, the combined viewership of free ad-supported TV (FAST) platforms and ad-supported subscription over-the-top tiers鈥攊n other words, the total AVOD audience鈥攚ill exceed 180 million. That figure will tower over pay TV鈥檚 total 111.5 million viewers. The pace of change will be jarring for advertisers who still plan based on linear TV spots.

Subscription fatigue in some regions is real, but the subscription OTT industry still has plenty of room to grow in other markets. Read on for our latest forecasts.

Content has shifted online with the rise of subscription streaming services, with shows, movies, and even live sports now available on these platforms. Advancements in smart TV technology coupled with enhanced connectivity have made these devices increasingly affordable and user-friendly, transforming the way people consume television content and transforming CTV platforms in the process.

The rise of ad-supported streaming subscriptions is further eroding pay TV鈥檚 share. Pay TV services lost 5 million subscribers in 2023 as ad-supported subscriptions proliferated, per Leichtman data. Pay TV鈥檚 remaining edge is that it provides easy access to sports content, which makes up the overwhelming majority of the most-viewed broadcasts in US television each year.

China鈥檚 retaliation rattles markets, but Big Tech could offset losses by leaning into AI, services, and subscriptions鈥攊f consumers still bite.

NBCU and Macy鈥檚 deal highlights live events as crucial opportunities: Advertisers reach massive audiences through events like the Macy鈥檚 Thanksgiving Day Parade.

Subscription OTT video is chasing linear TV in terms of time spent in the US. We estimate adults still spend significantly more time per day watching TV, but that figure is decreasing and will fall below 3 hours this year. Meanwhile, for subscription OTT video, time spent will surpass an hour and a half per day. But ad spend on these platforms is not proportional to time spent.

Ad-supported video-on-demand (AVOD) services will gain more than triple the US viewers that subscription OTT video will this year, per our forecast. AVOD will add 13.3 million viewers, including 4.3 million from free premium platforms, for a total of 157.1 million. Meanwhile, subscription OTT services will gain 4.3 million viewers to reach 222.2 million.

(Insider Intelligence subscription required). Note: Individuals of any age who watch an internet-delivered live TV service via app or website at least once per month (e.g., Hulu + Live TV, Sling TV, YouTube TV).

Ad-Free Streaming Video Viewers 2024.

Even as we approach a potential ad spend winter, connected TV (CTV) advertising is in decent shape. Netflix and Disney+ just joined the ad-supported streaming game. Cord-cutters are outpacing pay TV viewers. And YouTube is increasingly watched on CTVs. These five charts offer a closer look at CTV鈥檚 past, present, and future.

The majority of subscription video-on-demand sign-ups on Peacock and Hulu are ad-supported, according to Antenna, accounting for 69% and 58% of overall subscription plans, respectively.

The number of subscription video-on-demand services has increased dramatically in recent years, as has the price of ad-free alternatives and the barrier of entry for sports streaming packages like YouTube鈥檚 NFL Sunday Ticket. Those rising costs have created an appetite among consumers for cheaper, ad-supported subscription tiers, but also for FAST services and free entertainment, hence Tubi鈥檚 rise.

A growing number of paid TV subscriptions are delivered via the internet. This has been driven by live sports viewership. Demographics. CTV has the largest audience share among millennials: There will be 62.0 million millennial CTV users in the US this year, per our forecast.

In the US, 77% of TV-owning households had a smart TV as of Q1 2023, according to Hub Research. Connected TVs, which include smart TVs, streaming sticks, and other devices, will be used in 115.1 million households next year, more than double the number of traditional pay TV households, according to our forecast.

A streaming service that underindexes on advertising may be doing so intentionally because it relies most on subscription fees to fund content production and it doesn鈥檛 want to increase churn by opening up the advertising firehose too widely. Meanwhile, other services are free and serve ads to all viewers.

Within a few years, Netflix and Amazon Prime Video will likely be the leaders in sub OTT ad revenues. Read the full report, US Forecast Trends to Watch in 2025.