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Nearly a third of the US population will be free ad-supported streaming TV (FAST) viewers by 2027, accounting for a total of 114.5 million viewers, according to our September 2023 forecast. That large audience base, coupled with the rise of new players and the abundance of ad inventory, is making FASTs increasingly appealing to media planners鈥攅specially those on a budget.

Time spent with connected TV (CTV) by US adults will be within 1 hour of linear next year, at 2 hours and 3 minutes (2:03) and 2:48 per day, respectively, according to our June forecast. CTV usage is outpacing ad spend on most platforms, but spend is growing rapidly as Netflix, Disney+, Max, and Amazon Prime Video push more viewers toward ad-supported tiers. As the CTV ad floodgates open, advertisers need to make sure they鈥檙e maximizing ad value by thinking of CTV differently, experts suggested at last week鈥檚 Advertising Week New York.

In subscription revenues and viewers, YouTube TV has distanced itself from the digital pay TV pack. Digital pay TV is synonymous with a virtual multichannel video programming distributor (vMVPD). It refers to digitally delivered live TV services like YouTube TV and Sling TV.

Streaming makes ad spending gains, Netflix experiences growing pains, and advertisers encounter a soft upfront market.

Amazon Prime Video ads launched today, defaulting Amazon鈥檚 163.3 million US viewers into its ad-supported tier unless they pay a premium to opt out. This is good news for Amazon鈥檚 $44.26 billion dollar retail US media business. But who could this move hurt?

On today's episode, we discuss why Disney+ lost around 3 million subscribers, how much its new ad-supported tier can move the needle, and whether The Walt Disney Co. is more likely to buy the rest of鈥攐r sell鈥擧ulu. "In Other News," we talk about how connected TV (CTV) viewers feel about "enhanced" ad formats and what a new category of video called "accompanying in-stream" is all about. Tune in to the discussion with our analyst Paul Verna.

Marketers need a vertical video ad strategy for YouTube Shorts to reach the 164.5 million US viewers that will use the platform this year, per our forecast. Much of what works on TikTok will work on Shorts because the platforms are so similar. But because a lot of YouTube creators are used to longform, they may need some guidance. Here are some of YouTube鈥檚 own best practices for Shorts ads from its ABCDs of effective video ads guide.

On today's episode, we discuss what's going on with Netflix's ad-supported tier, what its plans to crack down on password sharing could do to viewership, and what Netflix's subscriber growth will look like over the next few years. "In Other News," we talk about fuboTV's current position in the market and what people stream the most on their TVs. Tune in to the discussion with our analyst Paul Verna.

While the platform鈥檚 ad-supported tier gains momentum, Netflix needs to beef up its targeting capabilities to win advertisers over. Meanwhile, viewers may be turned off by a heavy ad load and a crackdown on password sharing. But global growth shows promise for Netflix鈥檚 future.

Linear losses: Radio and linear TV news are on the decline for both news consumption and general viewership as audiences switch to on-demand streaming and podcasts.

In 2023, non-pay TV viewers (the sum of cord-cutters and cord-nevers) will surpass traditional TV viewers for the first time. As more and more streaming content is served on ad-supported services, CTV ad spending trends will track viewership of non-pay TV. To view the forecast for traditional pay TV viewers, click here, and to view the forecast for non-pay TV viewers, click here.

CNN isn鈥檛 done with streaming: In a memo announcing layoffs, CEO Mark Thompson said a standalone streaming service is coming.

As recently as 2019, traditional pay TV drew over 90 million more viewers than ad-supported streaming services. In less than 10 years, that dynamic will have more than reversed. By 2027, AVOD will lead pay TV by more than 100 million viewers, and the gap will only get more extreme as pay TV devolves into a niche format. Viewers will be harder to reach as AVOD steals time.

The opportunity: Hispanic viewers offer marketers a chance to tap into a diverse, rapidly growing consumer segment that is highly engaged with sports media and has significant buying power. Hispanic audiences have helped popularize soccer in the US, but their viewership of other sports is rapidly rising. Since 2021, Hispanic Super Bowl viewership has grown 51%.

In 2024, the number of pay TV viewers will fall by about 10 million while AVOD viewers will increase by just over 16 million. By 2027, AVOD will outnumber pay TV by more than 100 million viewers. View the full forecasts for pay TV and AVOD viewers. Google鈥檚 share of ad spend will fall below 50% while genAI disrupts search.

Can Tubi break into a tight UK streaming market? The Fox-owned service launched in the UK last week hoping to capitalize on a turn toward cheaper streaming options.

The unscripted advantage: Netflix is well ahead of other streaming platforms, used by 59% of US adults, dominating in total viewership for subscription OTT platforms, and leading in ad revenue growth.

Less than 5% of free game players make in-app purchases, per Z2A Digital, and two-thirds (66%) of US TV viewers now prefer ad-supported streaming over ad-free alternatives, per Hub Research data. While Zynga looks for brand integrations that are as seamless as possible, consumers have proven their interest in watching ads in exchange for free content.

The sports rights spending of subscription OTT services will increase by more than $3 billion this year to reach $8.5 billion worldwide, according to Ampere Analysis. Their monthly viewership will also grow, per our forecast, surpassing 2 billion for the first time in 2023.

Digital video viewers and monthly audio listeners still outnumber digital gamers. But the lines between gaming and video are blurring as live gaming video content soars. Growth in digital gamers is approaching that of video watchers. But the number of digital gamers will still trail monthly digital audio listeners and digital video viewers by a wide margin through our forecast period.

Most subscription streaming services offer ad-free and ad-supported plans. After Amazon Prime Video introduced its ad plan in January, Apple TV+ became the biggest advertising holdout among streamers. Advertising holdouts have gradually accepted commercial breaks in their programming.

As rising inflation erodes consumers鈥� purchasing power, viewers of all ages are making tough choices about how many streaming services they鈥檙e willing to pay for each month. Consumers are willing to shell out for up to two streaming services.