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Free premium video streaming services—a subset of AVOD that’s limited to services accessible without a subscription—will top 100 million US viewers in 2023 and continue growing through 2027. Although growth in these services is slowing, the milestone is another indicator of consumer appetite for ad-supported streaming. Household viewing continues its shift to digital.

Ad-supported video-on-demand (AVOD), such as The Roku Channel and ad-supported versions of subscription services like Netflix and Disney+. YouTube, which will have nearly 45% of its viewing time on CTVs. Digital live TV services, such as Hulu + Live TV. Mobile remains the king of digital advertising, largely due to its diversity of content.

These two cohorts have been most negatively affected by rising inflation and dwindling disposable income, putting the cost of a monthly Netflix subscription out of reach for many households. Netflix will dominate paid streaming—with or without ads.

Streaming services were busy increasing subscription prices. It has become more expensive to avoid advertising, which is swaying more viewers to put up with ads.

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’t return to pandemic rates soon.

This article is part of Ä¢¹½AV’s client-only subscription Briefings—daily 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—delivering the latest news and insights—are completely free through January 31, 2025.

It’s becoming more expensive for streaming viewers to avoid advertising. Netflix, Disney+, and others have raised subscription prices over the past several months.

It shattered records with $50 billion in annual revenues, combining ad sales and subscription growth. YouTube TV and NFL Sunday Ticket are cementing YouTube’s presence in premium content. But consumers are showing signs of fatigue with subscription-based streaming services. After Netflix, Disney+, and Amazon all raised prices in 2024, more users are opting for cheaper, ad-supported plans.

FAST viewership skyrocketed from 2019 to 2021. Now that these services are relatively mainstream, growth has settled down. But FAST remains one of the top-growing subcategories within the OTT ecosystem.

For the most recent quarter, total revenues reached $195 million, up 12% YoY, with marketplace revenues rising 20% ($50 million) and subscription revenues increasing 10% ($146 million). Key stats:. The company now serves 125 customers with annual subscription revenues over $1 million, up from 105 last year.

Among subscription over-the-top (sub OTT) platforms, Paramount+ is set for standout ad revenue growth of 24.1%. And among the cohort of major free ad-supported streaming TV (FAST) services, Tubi will set the pace at 24.7%. Nearly every CTV player will outperform the wider digital ad market. To see the full forecast, click here. Social network ad spending—excluding TikTok—is in bad shape.

US programmatic video ad spend will grow $22.51 billion between 2023 and 2025, a 30.2% increase, according to our forecast.

In 2025, more than half of US Gen Zers (52.9%) and millennials (52.0%) will be monthly generative AI users, according to our forecast.

In the past five years, practically every major streaming service introduced ad-supported subscriptions. With so many premium services flooding the market, ad inventory has never been more plentiful. A recent Ä¢¹½AV analyst report found that the increase in supply is not just ensuring advertisers are able to easily get seen—it’s also driving down ad costs.

US Ecommerce Forecast 2023 (Insider Intelligence subscription required). Gen Z will push US mcommerce toward the tipping point for online sales. Walmart and Amazon look to boost shipping speeds. How retailers like Sephora, Nike, and Amazon bridge the digital-physical gap.

Key stat: 43% of US adults say discounts are the main reason they sign up for subscription services, per May data from SurveyMonkey.

How Amazon Prime Video and Netflix are balancing subscription and ad revenue. 5 key stats on CTV: Growth normalizes, subscriptions reign, and ad spend evolves. Gen Zers’ Netflix use is catching up to TikTok use. US advertisers are pulling money from linear TV to increase programmatic CTV spend.

(Subscription required). US Ad-Supported vs. Ad-Free Streaming Video Viewers 2024 (Subscription required).

US adults are fairly evenly split on using mobile payment apps online versus in-store—except with PayPal, where 36% of users use the platform online most often, compared with 29% of users who use the app in-store, according to CivicScience.

Hispanic digital media usage rivals or exceeds that of the total population on most media platforms, especially Instagram and WhatsApp. Their strong online presence and enthusiasm for sharing product recommendations with friends make them both a target and an ally for advertisers.

Streaming Service CPMs 2023 (Insider Intelligence subscription required). As streaming wars heat up, nearly three in 10 US internet households are canceling services to save money. Seeking profitability, streamers increase subscription prices. Disney and Spectrum reach a new deal that includes Disney+ and ESPN subscriptions.

More US consumers are engaging in money-saving activities (like using coupons or shopping for deals) in 2023 than they did in 2019. The number of US consumers doing more comparison shopping online in particular has risen by 17 percentage points from 2019 to 2023.

Amazon’s handling of its ad-supported launch has also received blowback from consumers, and subscription growth is stagnating for most leading services. The MrBeast deal targets all three of those pain points.

Relative newcomers to ad-supported OTT include Disney+, Max, and Netflix. On Disney+ and Max, over one-fifth of subscribers are ad-viewers, according to our September 2023 forecast. On Netflix, this figure is still fairly low. But on Prime Video, viewers will automatically be shown ads and have the option of upgrading to ad-free, rather than the other way around.

TikTok parent ByteDance has until January 19, 2025, to sell the company or face a US ban. The company is suing to avoid the ban, but if the platform goes away, marketers need to know how to reach TikTok users on other platforms. From Gen Z to niche communities, here are five key stats showing the places marketers should be able to reach TikTok users.