The surge in subscription video-on-demand over the last few years has seemed unstoppable but a study from cloud-based broadcast technology provider Amagi is warning that video consumers in the US at least are increasingly considering unsubscribing from SVOD and turning to advertising streaming services.
The fifth edition of Amagi’s Global FAST Report analysed how the free ad-supported streaming TV (FAST) industry will perform under the current economic crisis on a global scale, comparing information from Q2 of 2022 with that of the same quarter in 2021.
Fundamentally the report found that the cut back in subscription services was as a direct consequence of the cost of living crisis. Specifically, as many as two-thirds of 67% of consumers said that they would switch from SVOD to FAST in order to save on their TV expenses. It also revealed that the FAST industry was particularly well-placed to grow despite the current economic uncertainty.
When asked what they would cut down if they needed to reduce their expenses, 47.3% said they would look to decrease their travel expenses, 33.22% would give up their TV subscriptions, and nearly 6% would reconsider their car/transport costs, with everything else accounting for the difference.
The survey also found that global AVOD ad revenues are expected to hit $56 billion by 2024, while APAC continues to be on top of the list with an ad revenue projection of around $25 bn by 2024. As for the annual FAST ad revenues in the US, they are expected to hit $6 billion by 2026. Amagi noted that the FAST industry finds itself in the unique position of potentially further accelerating in the event of an economic slowdown.
Data from Amagi’s analytics platform showed a 105% year-on-year (YoY) growth in FAST channel deliveries, a 130% YoY increase in ad impressions and an 84% YoY rise in total hours of viewing (HOV).
While linear channels across FAST platforms offered a a plethora of content, a few genres stood out in the Amagi report as the audience favourites. News was the top performer attracting 35% of the ad impressions in Q2 2022 and 30% of the total hours of viewing during the three-month period.
Fundamentally the report found that the cut back in subscription services was as a direct consequence of the cost of living crisis. Specifically, as many as two-thirds of 67% of consumers said that they would switch from SVOD to FAST in order to save on their TV expenses. It also revealed that the FAST industry was particularly well-placed to grow despite the current economic uncertainty.
When asked what they would cut down if they needed to reduce their expenses, 47.3% said they would look to decrease their travel expenses, 33.22% would give up their TV subscriptions, and nearly 6% would reconsider their car/transport costs, with everything else accounting for the difference.
The survey also found that global AVOD ad revenues are expected to hit $56 billion by 2024, while APAC continues to be on top of the list with an ad revenue projection of around $25 bn by 2024. As for the annual FAST ad revenues in the US, they are expected to hit $6 billion by 2026. Amagi noted that the FAST industry finds itself in the unique position of potentially further accelerating in the event of an economic slowdown.
Data from Amagi’s analytics platform showed a 105% year-on-year (YoY) growth in FAST channel deliveries, a 130% YoY increase in ad impressions and an 84% YoY rise in total hours of viewing (HOV).
While linear channels across FAST platforms offered a a plethora of content, a few genres stood out in the Amagi report as the audience favourites. News was the top performer attracting 35% of the ad impressions in Q2 2022 and 30% of the total hours of viewing during the three-month period.
