蘑菇AV

On today's episode, we introduce you to the FAST (free ad-supported streaming TV) services (e.g., Tubi, The Roku Channel, and Pluto TV), explain how they became so popular, and look ahead to see what their ceiling is. "In Other News," we talk about whether the advertising space is on the mend and how significant of an ad player Microsoft is. Tune in to the discussion with our analyst Ross Benes and director of Briefings Jeremy Goldman.

56% of US adults think ad breaks on free-ad supported streaming TV (FAST) services should be under 30 seconds, according to an August 2023 ViewNexa survey.

The majority (65%) of US consumers say that two or three ad breaks per 1 hour of free ad-supported streaming TV (FAST) are acceptable, according to a ViewNexa survey.

On today鈥檚 podcast episode, host Bill Fisher is joined by our analyst Paul Briggs and forecasting writer Ethan Cramer-Flood to examine the size, advertiser opportunity, and competitors in the free ad-supported streaming TV (FAST) service space.

The year of streaming price hikes: Streaming services became more expensive than ever in 2023, leading to a focus on bundles and cheaper AVOD tiers.

Amazon merchants could give it a leg up in the AVOD race: The company has offered to fund ad production for brands that buy at least $15,000 in video commitments.

Most viewers can tolerate ads, actually: Only 16%鈥�17% of viewers can't tolerate them, per Hub Entertainment research, suggesting room for further AVOD growth.

狈别迟蹿濒颈虫鈥檚 ad-supported video-on-demand experiment got off to a bumpy start in late 2022 and early 2023, but by 2024, the US leader in subscription OTT (sub OTT) viewership had righted the ship. With its ad tier proving to be incredibly popular and its ad tech improving, we forecast 43.0% growth for 2025, reaching $2.07 billion.

Pluto TV viewing hours grew 16% in Q4, proving the resilience of the free, ad-supported streaming model despite broader ad market challenges. TV struggles continue:. TV Media revenues declined 4%, driven by a 4% drop in ad revenues and 7% decline in affiliate and subscription fees as cord-cutting continues to erode the traditional TV business.

Streaming enters the chat: Tubi鈥檚 free stream was a pivotal moment for FAST (free ad-supported streaming TV). While this expanded access, technical delays were a major issue. Fubo had the worst lag, with some viewers seeing the action up to 78 seconds late, according to Phenix, a real-time streaming data provider.

Social video (TikTok, Instagram Reels, etc.), YouTube, and free ad-supported streaming TV (FAST) are also gaining share, but they are falling further behind sub OTT nonetheless. Click here to view our forecast for time spent with TV or various forecasts for time spent with digital video by activity. Sub OTT will account for nearly half of all time with digital video this year.

For free ad-supported streaming TV (FAST) services like Tubi and Pluto TV, time spent and advertising time spent shares stack up similarly. Netflix is the biggest outlier鈥攊ts large time spent share far outstrips its minuscule share of ad exposures. With lighter ad loads and a surplus of ad-free viewers, the trend of streaming viewing replacing linear TV will result in less ad inventory.

Will AVOD, Price-Slashing, and Localized Content Keep the Streaming Giant in the Lead?

鈥淲ith traditional studios producing less, streamers with user-generated or reality content鈥攕uch as YouTube, Roku, and FAST channels鈥攎ay capture more upfront attention,鈥� said PMG鈥檚 Corsinita. Reduced content production will make ratings harder to predict, which will drive advertisers to seek stronger audience guarantees, MiQ鈥檚 Chughtai argued.

It would be poorly timed given the proliferation of ad-supported subscription OTT tiers, free ad-supported streaming TV (FAST), and digital pay TV services counting on CTV鈥檚 momentum. But CTV is also well-positioned to ride out 2025鈥檚 instability if the worst-case economic scenario does not come to pass. Click here to view our full forecast for US connected TV ad spending.

The digital landscape in Europe is slowing, but opportunities for advertisers, brands, and retailers still exist. Knowing where to look to achieve the best outcomes will be paramount.

This is the Q1 2025 installment of our quarterly 鈥淎d Spending Benchmarks鈥� series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.

Most consumers accept ads in streaming: An Attest study highlighted the growing preference for ad-supported options as streaming proves sustainable.