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Ad-supported tiers of subscription streaming services like Hulu and Peacock are not part of FAST. Most of the content on FAST services is old and licensed. Entire channels are built around shows such as 鈥淏aywatch鈥� and 鈥淢idsomer Murders.鈥� But FASTs have diversified their content.

You get the ad supported product for a dollar a month, but the ad free price doesn't budge much. But that strategy only really works as long as the CTV ad prices remain very high. And they probably will for at least the next year or so.

On today's podcast episode, we discuss why households with no pay-TV (traditional or digital) will be the majority and if livestream shopping in America can become habitual. Tune in to the conversation with Senior Director of Podcasts and host Marcus Johnson, Principal Forecasting Writer Ethan Cramer-Flood, and Senior Director of Forecasting Oscar Orozco. Listen everywhere and watch on YouTube and Spotify.

Expected within months, the redesign aims to prioritize paid subscriptions from services like Peacock, Paramount+, and Max. The change comes as people now spend more time watching YouTube on TVs than on any other device, including smartphones.

US Social Network Forecasts 2024 (Subscription required). The CTV Opportunity (Subscription required). Note: Respondents were asked, "What are your primary goals with YouTube marketing?". Methodology: Data is from the September 2024 Influencer MarketingHub "YouTube Marketing Report 2024." 250 marketers worldwide were surveyed during August 2024.

Our time spent estimates factor in ad-free subscription-based audio services like Spotify, which is the largest digital audio streamer in Canada. Social media time spent has jumped over the past five years. It will increase 34.0% between 2019 and 2024.

A budget-friendly premium tier could pull podcast fans away from Spotify, offering ad-free listening where they already watch鈥攐n YouTube, and increasingly, on their TVs.

Subscription streamers have lighter ad loads. Unlike FASTs that rely exclusively on advertising revenues, subscription streaming services generate most of their revenues from subscription fees. Because subscription services are less dependent on advertising, they have lighter ad loads than FASTs. But each service鈥檚 ad tier produces a much different user experience.

Monetization via subscriptions limits digital audio ad slots. The relatively low ad spend reflects, in part, limited inventory. Audio subscriptions will account for 63.0% of digital audio revenues in 2024. Even when taking time spent into consideration, audio advertising remains low. Digital audio will earn 5 cents per user hour in 2024, compared with 8 cents for radio and 21 cents for TV.

It鈥檚 the No. 1 way to access long-form content via over-the-top (OTT) services, according to Roku and Fuse Insights鈥� 鈥淰ideo-on-Demand Evolution 2024鈥� report. 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.

Available on more than 70 million smart TVs across the region, the app could significantly boost ad revenues鈥攅specially since fewer than half of Latin Americans pay for a streaming subscription. We expect Mercado Libre鈥檚 retail media arm to capture 6.2% of digital ad spending in Latin America this year, up from 5.1% in 2024.

Half of Netflix鈥檚 new subscriptions came from its ad-supported tier, propelling it past 70 million ad-supported users. AVOD options also continue to make gains, giving firms like Roku a leg up. For advertisers, streaming saturation means cheap access to consumers. With subscription revenues set to slow, streamers will rely on advertising to maintain growth.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

Marcus Johnson: Yeah, the how-they-make-money part is fascinating because you mentioned maybe potentially charging a subscription fee. Debbie was saying that one trend to kind of watch this year and going forward is that ads may not be the primary revenue source for [00:11:00] social media platforms in the future.

The news: Apple TV+ is losing more than $1 billion annually, making it Apple鈥檚 only unprofitable subscription service. Those losses are adding up despite Apple TV+ reaching 45 million subscribers in 2024, per The Information. Only 22% of connected TV (CTV) users watched Apple TV+ in 2024, per LG, compared with 45% for Hulu, 61% for Amazon Prime Video, and 66% for Netflix.

But in the UK, leaders like Amazon, Netflix, and Amazon-owned Freevee make up a significant chunk of viewership across both free, ad-supported TV platforms (FAST) and subscription over-the-top (OTT) video. Tubi managed to excel in the US despite the crowded streaming market through offering free, ad-supported access to content that differentiates it from major competitors.

The recent rollout of Prime Video ads isn鈥檛 the only contributor to rising competition in connected TV (CTV) advertising鈥攐ther subscription over-the-top (OTT) players are stealing market share. US adults will spend 4.1% less time on Netflix in 2025 than they did in 2021, but they鈥檒l increase time spent by 4.2% with other subscription OTT services, according to our forecast.

They also have a variety of SVODs that they're trying to monetize through subscriptions. So it's sort of a double-edged sword for them in terms of cannibalizing their revenue streams, in terms of subscription revenue both on the cable and on the streaming side, to making it 100% reliant on advertising monetization which a FASST channel would require.

From the resonance of retail media networks to the resurgence of social ad spend and burgeoning subscription over-the-top (sub OTT) platforms, the impact of these channels is being felt in the overall ad market. October saw a 3.2% YoY growth for the US ad market, according to the Standard Media Index ad market tracker.