SYNOPSIS:
It is more expensive than ever to stream ad-free video, especially when the top services continue to raise their prices. Households subscribe to 5 streaming services on average, but as many face a steady loss of buying power, more are experimenting with ad-based services to help offset the growing expense of entertainment. This study documents the rise of ad-based streaming including both FAST and AVOD services. It analyzes why ad-based services are experiencing a surge in popularity, which services are the most popular, and household sentiment towards the ad-based experience.
INFOGRAPHICS
Key questions addressed:
- 1) What is the state of the ad-based video streaming market?
- 2) What drives viewers to ad-based services?
- 3) How do viewers perceive the content on ad-based services?
- 4) What are the pain points viewers experience on ad-based services?
- 5) What would improve the ad-based experience for viewers?
ANALYST INSIGHT:
"The current streaming landscape is extremely volatile and fiercely competitive. Providers of all sizes strive to innovate, reach more viewers, improve efficiency, deliver in-demand content, and above all, achieve profitability." - Sarah Lee, Research Analyst, Parks Associates.
Table of Contents
Video Services Ecosystem
Executive Summary
- Use of OTT Video Services in Past 30 Days, by Business Model: Subscription (SVOD)
- Use of OTT Video Services in Past 30 Days, by Business Model: Free Ad-Based (FAST/AVOD)
- Likelihood of Moving OTT Subscription to Ad-Free Tier
- Pain Points with Ad-Based OTT Services Among Ad-based Users
- Net Promoter Score of OTT Services: Basic Tier vs Premium Tier
- Reasons for Subscribing to Basic Tier with Ads by Services
- Action Towards Price Increase for Streaming App Without Ads
- Action Towards Price Increase for Streaming App Without Ads by Ad Relevance Influence
- Interest in T-Commerce
- Interest in T-Commerce by Ad Relevance Influence
Streaming Market Overview
- Penetration of Traditional vs. OTT Video Services
- Number of OTT Service Subscriptions
- Use of OTT Video Services in Past 30 Days, by Business Model
- Free and Subscription Ad-based Streaming Adoption
- Overlap of SVOD and Ad-Based Streaming
- Demographic Breakdown of Video Service Users
- Trends in Monthly Spending on OTT Video Services
- Primary Connected TV Platform
Ad-Based Streaming Trends
- Use of Leading Free Ad-based Video Services
- Attitudes Towards Video Services
- Attitudes Towards Video Services by Age Group
- Drivers for Using Free Ad-Based OTT Services
- Attitudes Towards Video Services by Age Group
- Pain Points with Ad-Based OTT Services
- Free Ad-Based Service Viewing Frequency
- Frequency of Watching Free Ad-Based Services
- Ad-Based Service Viewing Frequency by Attitudes Towards Content Seeking
- Genres of Online Content Viewed by Ad-Based OTT Subscribers
Subscription Advertising Tiers
- Trends in Use of Basic with Ads or Premium Ad Free Tier for Major SVOD Services
- Reasons for Subscribing to Basic Tier with Ads
- Reasons for Subscribing to Basic Tier with Ads by Services
- Likelihood of Switching from Premium Tier to Basic Tier with Ads
- Likelihood of Switching from Premium Tier Services to Ad-Based Service Tier by Services
- Net Promoter Score of Leading OTT Services: Trending
- Net Promoter Score of OTT Services: Basic Tier vs Premium Tier
- Reasons for Cancelling Service
- Incentives to Prevent Churn
Impact of SVOD Price Increases on Ad-based Services
- Action Towards Price Increase for Streaming App Without Ads
- Action Towards Price Increase by Gender
- Action Towards Price Increase by Generation
- Action Towards Price Increase for Streaming App Without Ads by Children at Home
- Action Towards Price Increase by Type of Premium Service Subscribed
- Action Towards Price Increase by Consumer Attitudes
- Action Towards Price Increase for Streaming App Without Ads by Ad Relevance Influence
- Likelihood of Moving OTT Subscription to Ad-Free Tier
- Likelihood of Moving OTT Subscription to Ad-Free Tier by Age
- Likelihood of Moving OTT Subscription to Ad-Free Tier at $14.99 by Leading Ad-based Video Services
Interactive Advertising and T-Commerce
- T-Commerce Activities
- Interest in T-Commerce
- Interest in T-Commerce by Age Group
- T-Commerce Activities by Interest in T-Commerce
- Interest in T-Commerce by Ad Relevance Influence
- Preferred Interactions with Ads
Appendix