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The news: Amazon is shutting down its standalone free ad-supported streaming television (FAST) platform Freevee in August. All Freevee content鈥攊ncluding original series and live TV鈥攚ill migrate to Prime Video. Advertisers take heed: As streaming giants consolidate, ad buyers might see fewer platforms but more fragmented audiences. This centralization of inventory boosts scale but narrows options for niche targeting. Our take: Amazon and its rivals are bundling content into fewer apps to boost ad revenue and reduce churn. But for advertisers, viewer behavior is splintering as audiences jump between services each month, chasing new shows, deals, and lower costs.

TV ad spending includes broadcast TV (network, syndication, and spot) and cable TV.

Time spent with cable TV and broadcast radio skews older. Where they overindex in media usage is in music and gaming. According to a November 2022 WPP Unite and Choreograph report, LGBTQ+ consumers have higher usage in video games, music streaming, and short videos compared with the total population in the US, UK, and Canada.

OTT video鈥攊ncluding YouTube, subscription OTT, AVOD, and free ad-supported streaming TV鈥攊s extremely popular in nearly all forms. But traditional pay TV continues to reach new lows.

It also includes multichannel video providers on a subscription basis (e.g., cable TV, wireless cable TV, direct broadcast satellite services). "Other" industries include categories that fall outside of those mentioned, such as real estate, politics, nonprofit, professional services, energy, manufacturing, industrial, and education.Less.

But cable TV is a very different medium from a mobile app and what works with HSN and QVC鈥檚 audiences may not resonate with younger consumers. However, being an earlier mover may enable it to find the right formula. Go further: Listen to the recent 鈥淏ehind the Numbers: Reimagining Retail鈥� podcast episode focused on livestreaming.

It also includes multichannel video providers on a subscription basis (e.g., cable TV, wireless cable TV, direct broadcast satellite services). "Other" industries include categories that fall outside of those mentioned, such as real estate, politics, nonprofit, professional services, energy, manufacturing, industrial, and education.

Younger consumers increasingly prefer creator content over TV, film: A Deloitte study indicates that advertisers need to rethink their strategies to remain competitive.

One contributing factor may be the predominance of multigenerational households: A larger household means a greater demand for content variety, which streaming offers more readily and affordably than traditional or cable TV. Per the 2023 Census data, the average number of people per family household is highest among Hispanics compared with other racial and ethnic groups.

TikTok is specifically betting on Indonesia, where it has over 277.5 million users and where influencers on its social video platform sell products on livestreamed videos鈥攕imilar to home shopping channels on cable TV but with a much wider reach.

A higher percentage of US adult Gen Z respondents were receptive to social media advertising (72%) compared with ads on streaming TV (47%), cable TV (28%), or broadcast TV (20%), per a February 2023 NCSolutions survey. They occasionally unplug.

As the TV and streaming landscape becomes increasingly fragmented, the terms used to describe different ways to watch are multiplying. We鈥檝e already broken down the difference between connected TV (CTV) and OTT. With subscription video-on-demand (SVOD) platforms becoming ad-supported SVODs, and ad-supported video on demand (AVOD) platforms building out free ad-supported TV (FAST) platforms, it鈥檚 difficult to keep track of what cord-cutters are actually watching. Here鈥檚 a breakdown.

(The same study found that 30% of cable TV subscribers plan to cancel their service this year.). Why they鈥檙e churning: Streamers are adjusting their prices, reflecting the rising costs of content delivery. Notable hikes have been seen across all the major streaming platforms, including Netflix, Disney+, and Prime Video. These price increases are a response to a saturated market.

While the top two channels by ad spend in 2023 were broadcast and cable TV, marketers are increasing their spend on search engine marketing and social media. Local marketers should prioritize investments in channels they know customers are looking for information on local businesses. 72% of US adults have used Google search to look up information about local businesses, per December data from SOCi.

Note: TV includes broadcast TV (network, syndication, and spot) and cable TV; excludes digital. CTV includes digital advertising that appears on connected TV (CTV) devices; includes display ads that appear on home screens and in-stream video ads that appear on CTVs from platforms like Hulu, Roku, and YouTube; excludes network-sold inventory from traditional linear TV and addressable TV advertising.

Gen Zers spend 1.3 hours per day watching TV shows and movies via streaming services, compared with 1 hour watching user-generated content (UGC), and 0.8 hours using cable and CTVs. Millennials spend 1.5 hours streaming, 0.7 hours consuming UGC, and 1.1 hours on social media.

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.

CNN launches $3.99 paywall: It鈥檚 a bid to grow digital dollars as cable viewership and revenues decline.