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Comcast to distribute Max in the UK in exchange for US bundle rights: The deal shows competitors willing to team up in a saturated market.

Video subscription fatigue will signal an upturn in demand for ad-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST). At the subscription video-on-demand (SVOD) end of the scale, cheaper ad-supported tiers will become ever-more prevalent.

The TV-to-AVOD revolution will happen faster than you think. Ad-supported video on demand (AVOD) viewership recently overtook pay TV viewership, but the disruption generated by this sea change has only just begun. In 2024, the combined viewership of free ad-supported TV (FAST) platforms and ad-supported subscription over-the-top tiers—in other words, the total AVOD audience—will exceed 180 million.

Free ad-supported streaming TV (FAST) channels continue to ramp up. FAST viewers will top 100 million for the first time in 2023 and approach 115 million in 2027, per our forecast. Among the 40% of US adults who increased their time spent viewing FAST channels over the past year, one-third reported that FAST viewing is additive, according to Aluma Insights.

CEO Mark Thompson has emphasized video as central to CNN's future, envisioning its infusion across streaming, FAST channels, and digital platforms. This paywall rollout marks a more cautious attempt to monetize digital content after the failure of CNN+, the network’s previous foray into subscription-based services, which shut down shortly after its launch.

Our take: Amazon has quickly emerged as a leader in ad-supported video, solidifying its position across several major advertising sectors. Its strong offerings in retail media, video, and connected TVs will allow advertisers embedded in one sector of its ad business to test other formats.

This figure encompasses multiple forms of growing formats, including subscription and ad-supported video-on-demand (AVOD), and free ad-supported TV. It also factors in device variety including connected TVs, smartphones, and tablets. Pay TV declines are the result of greater choice from the immense variety in video.

The ecommerce giant’s launch of ads on Prime Video instantly gave it the largest audience for an ad-supported subscription video service in the US.

Ad-supported video-on-demand (AVOD) is also popular with Asian American consumers. Seventy-five percent said they preferred using free AVOD services rather than paying subscription fees for ad-free video. Zoom out: LG’s report highlights CTV’s ability to deliver highly targeted ads that allow advertisers to forge connections with audiences across demographics.

That will help accelerate the growth of free ad-supported streaming TV (FAST) channels, episodic creator content, and creator-owned media, spurring more competition for audiences, ad dollars, and subscription revenues. Stubborn marketers, social platforms, and media companies will be left behind.

Among the four ad-supported video-on-demand (AVOD) subscription services we track, Netflix has the highest CPMs, and Hulu has the lowest. Disney+ and Peacock occupy the No. 2 and No. 3 spots. CPMs are normalizing because Netflix and Disney+ aren’t getting the rates they sought when they rolled out ad-supported tiers in late 2022.

Up to 25% of ad slots go unfilled on FAST channels due to these timeouts, leaving viewers’ time and underusing inventory. Ads near slates were rated 3% lower in quality, hurting brand perception. Programs without slates led to a 31% increase in joy, as measured by facial coding.

In the coming years, competition for viewers among paid and free video options will be fierce. Sub OTT has reached maturation globally. Most digital video viewers are sub OTT viewers. In 2024, 3.78 billion people around the world will watch some form of digital video at least once per month. Of that cohort of video viewers, 57.4%—or 2.17 billion—will use sub OTT video services that require a fee.

Paramount Global, respectively) and gaining in viewership and ad revenues. ad-supported video-on-demand (AVOD) services, which include FAST services, aggregators like The Roku Channel and Samsung TV Plus, and the ad-supported versions of subscription OTT services like Disney+ and Netflix.

To see our new ad-supported video-on-demand viewers forecast, click here. Sources. Antenna. Comscore. Insider. MediaRadar. Nielsen.

After a rough first quarter with low ad-supported video-on-demand (AVOD) adoption that saw Netflix fail to meet expectations with its first advertisers, Bloomberg reports that Netflix is now properly delivering on its viewership estimates.

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. Among the total internet user population, smart TV penetration is at 55.3% in Canada, according to GWI polling from H1 2023.

Respondents watch free video-on-demand (FVOD) or free live TV streaming services.

The dip in CTV programmatic advertising reflects the rise of free ad-supported streaming TV (FAST) channels and ad-based video-on-demand (AVOD) tiers, like those introduced by Netflix and Disney+. These additions broaden the number of CTV ad units, leading to lower costs per thousand views (CPMs).