Free ad-supported TV streaming services are booming, 1 in 3 U.S. viewers tune in


Share post:

As more consumers look to cut costs and opt for a free streaming experience, services like Freevee, Pluto TV, Tubi, the Roku Channel and Crackle are seeing significant growth. According to Samba TV’s latest State of Viewership report, 1 in 3 U.S. users subscribe to free ad-supported TV streaming (FAST) services.

Notably, Amazon’s Freevee saw the highest viewership growth in the first half of 2023 compared to competitors, as it was up 11% year-over-year. Amazon has recently ramped up its focus on the FAST market, bringing hundreds of Amazon Original titles from Prime Video to Freevee as well as 23 new ad-supported TV channels from Warner Bros. Discovery and MGM.

Meanwhile, Pluto and Tubi were up 7% and 6%, respectively, whereas the Roku Channel and Crackle were both up 5%. Fox-owned Tubi touted in its earnings call yesterday that its total consumption grew by 79%, further highlighting the demand for FAST services among viewers.

Screenshot 2023 08 09 at 12.43.01 PM

When we compare this to SVOD (subscription video-on-demand) streamers, a few major platforms saw declines. For instance, Netflix dropped 1% YoY, and Peacock saw a 2% decrease in viewership (maybe don’t kill your free tier, Peacock). Even Freevee’s sister streaming service, Prime Video, had a mediocre rise in viewership at only 3% YoY.

Cheaper ad-supported streaming options are also being favored over SVOD services. Samba TV reported that 1 in 4 premium streaming subscribers pay for an ad-supported subscription in 2023. Sixty percent of U.S. adults said they would consider subscribing to a “discounted” streaming service if it meant viewing ads, Samba TV added.

The recent findings come less than a year after Netflix and Disney+ introduced their ad tiers. According to the report, 85% of participants who are Netflix and Disney+ subscribers said that they signed up for the ads plan soon after it launched.

Netflix boasted the success of its ad-supported tier during its first Upfront presentation, revealing that, as of May 2023, the plan has nearly five million global monthly active users. For the second quarter of this year, Antenna recently reported that 17% to 20% of new Netflix signups were for the ad tier.

Prime Video may also be getting an ad-supported tier, according to The Wall Street Journal, which reported in June that the e-commerce giant apparently considered an option where existing subscribers would automatically get ads and would have to pay more for ad-free content.

“Streaming first hit audiences as an ad-free, content-when-you-want-it replacement to cable,” Samba TV writes. “But, as these a la carte streaming options swell, audiences are open to welcoming ads back in if it lowers their monthly costs.”

If premium streaming services continue to hike up their subscription prices, it won’t be a surprise to anyone if this trend of FAST and ad-supported streaming continues its ascent.

Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

X will be profitable in 2024, CEO claims in tense interview

According to X CEO Linda Yaccarino, the company formerly known as Twitter will be profitable by early...

Epic asks the Supreme Court to weigh in on its beef with Apple

We haven’t heard the last of Epic’s crusade against Apple over the iPhone maker’s App Store fees. Epic...

Teamsters urge NHTSA to deny Cruise Origin exemption

The International Brotherhood of Teamsters union is urging U.S. auto safety regulators to deny a petition by...

From AI Assistant to image restyler: Meta’s new AI features

Meta announced a host of new AI-powered bots, features and products to be released across its messaging...

Regulators close investigation into Blue Origin’s New Shepard anomaly

The U.S. Federal Aviation Administration has closed the investigation into a mishap that occurred last September during...

Artifact takes on X and Threads with new Posts feature

Artifact, a platform built by Instagram’s co-founders, is launching the ability for users to make posts. Up...

Meta filmed Mr Beast, Paris Hilton and 26 more to build celebrity AIs based on Llama 2

Actors are in the middle of a major, protracted battle with Hollywood over what role AI will...

Security researcher warns of chilling effect after feds search phone at airport

A U.S. security researcher is warning of a chilling effect after he was detained on arrival at...