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Nearly two-thirds of US households pay for multiple subscription video services, according to August 2022 data from Leichtman Research Group. On average, households use over five streaming services, per Kantar鈥檚 Q3 findings. But inflation influences more consumers to cancel subscriptions. The pressure on subscription fees incentivizes streaming operators to consider promo prices and free tiers.

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+.

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.

Reaching these audiences has proved challenging for advertisers, especially with the dominance of subscription video-on-demand (SVOD) services like Netflix. But recent developments in Canada鈥檚 ad market are presenting new opportunities for media buyers and brand marketers. Ad-supported video-on-demand (AVOD) is now reaching critical mass in Canada.

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.

Just like with subscription OTT, AVOD viewers seem to be using multiple AVOD services at a time rather than limiting themselves to a single offering: The Roku Channel, Tubi, and Pluto TV will each have over 50 million viewers in 2022.

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.

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.

For Disney, a Hulu buyout would solidify its position as a titan of digital subscription video, and allow it to create a Hulu and Disney+ bundle combining two of the largest and most popular streaming libraries in a deal that would dramatically change the streaming landscape. But Comcast may not be willing to give up its share so easily.

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.

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.

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.

Paramount's mix of broadcast, free ad-supported streaming (FAST), subscriber video on demand (SVOD), and cable puts the company鈥攚hose brands include CBS, BET, Comedy Central, Pluto TV, Paramount Pictures, Smithsonian Channel, and Nickelodeon鈥斺�渋n a very powerful position" to weather the market, finance chief Naveen Chopra said at RBC鈥檚 media conference this week.

We are kind of so used to the streaming TV conversation being about Netflix, Amazon Prime, Hulu, that we haven't noticed a contingent of free and supported players quietly building their viewership numbers to now rival some of these familiar SVOD offerings, subscription video on demand, people like Netflix or Disney+. Ms.

Subscription video providers are under pressure as most consumers face a cost-of-living crisis. In 2023, nearly 200 million people in the region鈥攐ver 46% of the population鈥攚ill watch paid-for video delivered via the internet, per our forecast. Netflix is the most popular subscription video service in Western Europe.

Time spent with linear has been decreasing as time spent with subscription OTT and digital video (neither of which we breakout by age) increases. Kids are also listening to podcasts more. The share of kids ages 8-15 who listen to podcasts increased by 13% YoY to reach 26% in Q1 2022, according to GWI data. Gen Alpha is consuming content where you might expect.

So in this case I'm specifically talking about the paid ones, subscription OTT we call it. And the amount of time that adults spend watching subscription OTT is rapidly approaching two hours a day. That's pretty big. It's at 1:49 this year, but it'll be at two hours shortly.

Sports rights spending by subscription OTT TV services worldwide will total $8.5 billion this year, according to Ampere Analysis, showing that companies are vying for these engaged viewers. The hesitation: TV ads are great for top-of-funnel exposure, but viewers may not be as inclined to shop while following a game.