Three-fifths of US TV viewers want cheaper, ad-funded streaming | Media Analysis | Business | News | Rapid TV News
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As TV viewers suffer subscription fatigue and option overload, the exponential growth of connected television (CTV) is driving greater interest in free, ad-supported on-demand content according to the 2021 CTV Growth Opportunity Report from Verizon Media and Publicis Media.
Verizon AVOD survey 17 May 2021
The report featured findings from what was said to be a nationally representative survey of over 3,000 US TV viewers and was fielded between 1-11 February 2021.

The survey found that customers were trying a mix of paid, free and ad-supported streaming models. It warned that fragmentation may be a permanent fixture with the connected TV experience complicated with multiple tiers and available services.

Streaming adoption was said to be growing exponentially. Streamers used five services on average but three-quarters said that no one streaming service had it all, and 45% added that they felt they were using too many services for TV content. Nearly half of streamers also worried about how much they were spending on such services and were sharing log-ins to help manage costs.

Streaming subscriptions grew 48% compared with the third quarter of 2020 with US connected TV households in 2021 represented 81% of households, that is 105 million. There was a 39% increase in time spent with connected TV year-on-year with the survey predicting that connected TV ad spend will have grown 42% annually by end of 2021 to $11.35 billion.

There was also what was said to be an overwhelming demand for AVOD. Seven in ten respondents felt that AVOD paid content was worth it, calling it affordable, good value and a fair price. Three-fifths of viewers said that they would prefer if more streaming services offered cheaper, ad-supported subscription tiers, while almost half (47%) said they were more interested in ad-supported streaming than they were a few years ago.

In a clear indication to operators, 83% of the survey said they'd try an ad-supported version of their favourite service while just a little fewer said they'd consider an ad-supported version of a new service to save money.

The 2021 CTV Growth Opportunity Report 2021 CTV Growth Opportunity Report also made interesting comments regarding advertising. A quality ad experience was found to be critical, however, as nearly a quarter (23%) of AVOD subscribers said that they had switched to a paid, ad-free version of a service because of a bad ad experience. Bad ad experiences ranked include overly long commercial breaks (60%), too many commercial breaks (60%) and repetitive ads (58%).