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So in that way they're even better positioned than many of these sub OTT or SVOD services that we've talked about. Ethan Cramer-Flood (16:22):. Yeah, I mean cable TV is too expensive, so we've had cord cutting for years. Digital pay TV we thought maybe was going to be competitive. Now that's too expensive. These things are free, and they're just sitting there waiting for you, right?

Amazon鈥檚 ad launch will define streaming for years to come: In less than a year, Prime Video became a top dog in streaming advertising.

And Netflix has entrenched itself as a household necessity, with one of the most diverse libraries among major subscription video-on-demand platforms. These platforms are the best deal for many Hispanic households. Only 40% of Hispanic consumers cite language as a 鈥渧ery important鈥� factor when streaming, according to Nielsen. In comparison, 70% of non-Hispanic consumers feel the same way.

Black consumers are tech-savvy and eager to stay up to date on the latest digital and pop culture trends.

So the amount of time that people are spending in front of video is a huge drop in TV time, increase in subscription OTT, fast channels, whatever, all the streaming kind of things. And it balances out and we're all spending about as much time in front of the big screen as we used to. Marcus Johnson:. Okay. Oscar Orozco:. And consider audio too.

Subscription OTT (sub OTT) will increase by 6 minutes this year, while social network and digital audio time will increase by about 2 minutes each. Digital gaming and messaging will grow, but by less than 1 additional minute each. TV, meanwhile, did not lose as much time last year as we predicted, but it is still declining.

The recent proliferation of AVOD options among major subscription OTT providers has ensured the CTV boom will continue at least through this year. Moderation is on the horizon, but CTV will remain a massive category. Much of the transition to ad-supported CTV has already happened. This will likely be the final boom year.

Netflix鈥檚 US audience is saturated, as the service will reach more than three-fourths of US subscription OTT users this year. To generate more revenues from its consumers, Netflix has restricted password-sharing and continued to raise subscription fees. Netflix also adopted advertising after avoiding it for years. Amazon will have a big year in streaming.

The vast increase in video advertising, including an influx of ad tiers in subscription OTT, makes sense; it is effective. But its growth could also obscure the large audience and engagement that audio channels enjoy. Audio advertising is small but rising thanks to digital. After a slight dip in 2023, audio advertising will grow a modest 1.7% in 2024 to reach $17.61 billion.

Whether free, like YouTube, or paid, like sub OTT (a term we use interchangeably with SVOD鈥�subscription video-on-demand), all trends are still pointing in the right direction. However, growth is nowhere close to what it once was. A multidecade slog toward domination awaits. YouTube is already everywhere, and now some advanced economies are approaching sub OTT saturation as well.

A hot mic moment revealed Disney鈥檚 advertising audience: The company鈥檚 Q4 earnings came with AVOD revelations and significant gains in India.

Streaming services are increasingly rolling out promotions and discounts to drive ad-supported sign-ups鈥攕erving nearly half (49%) of subscription video-on-demand (SVOD) subscribers who view them as a good way to save money, per Circana. 鈥淭here will still be a big contingent, probably a third of viewers or more, who will opt to pay more to avoid ads though,鈥� Benes said.

At the subscription video-on-demand (SVOD) end of the scale, cheaper ad-supported tiers will become ever-more prevalent. According to Netflix鈥檚 latest earnings call, 30% of new sign-ups choose the ad-supported tier in countries where it鈥檚 available; this is less than a year after its introduction. Meanwhile, at the free and broadcast end of the scale, FAST services are proving increasingly popular.

BVOD will usurp subscription video-on-demand (SVOD) next year. The allure of 鈥渇ree鈥� on-demand services means the broadcasters鈥� combined user base will overtake that of Netflix, Amazon, Disney+, et al. next year鈥�42.1 million versus 41.2 million, respectively. Sub OTT video platforms are feeling the pinch.