Study uncovers that more than half of subscribers on platforms such as Netflix, Disney+, and Max do not encounter advertisements during their media consumption.
In a groundbreaking survey conducted by TVB, the trade association of America's local broadcast television industry, and research company GfK, the 2024 SVOD (Streaming Video on Demand) study sheds light on the evolving landscape of streaming services and consumer behaviour. The survey polled 4,000 respondents.
The study found that streaming subscribers are not only embracing ad-supported streaming tiers but also continue to watch linear TV. A significant 61% of Netflix subscribers, 58% of Amazon Prime Video subscribers, and more than half of Disney+ and Max subscribers do not see advertising [1][2][4]. This trend suggests a growing acceptance and adoption of ad-supported streaming options alongside traditional ad-free subscriptions in SVOD platforms like Netflix, Disney+, and Max.
Consumer tolerance for ads is increasing, making ad-supported options more appealing and widespread. At the same time, economic concerns are encouraging users to seek flexible, value-oriented subscription choices, including bundled streaming services that often mix ad-supported and ad-free content tiers [2][4][5].
Advertisers stand to benefit from this shift. Ad-supported streaming is becoming an increasingly valuable channel for advertisers, with the share of people who “can’t tolerate ads” dropping to about 11% [2]. Compared to linear TV, streaming offers more precise targeting and diverse demographics, especially younger viewers who are migrating to streaming [3]. While broadcast TV remains significant for mass reach and quick advertiser impact, streaming platforms provide advertisers with targeted, on-demand opportunities with measurable engagement.
However, ad-free tiers still retain strong appeal for consumers sensitive to interruptions, but these usually come at a higher price. Services like Disney+ and Netflix offer both ad-supported and ad-free tiers, allowing consumers to choose based on how much they value an ad-free experience versus subscription cost [1][4].
The study also underscores the enduring importance of broadcast TV to advertisers. Despite the rise of streaming, local TV news continues to be the most trusted news source, and local TV news websites/apps are the most trusted digital source [1].
The 2024 SVOD study also aimed to investigate viewership of ads on SVOD platforms. Interestingly, 74% of YouTube viewers who see advertising either skip the commercial or click away from the content when it's not available [1].
The study further revealed that TV is the most commonly used device for streaming and viewing content, even for Apple TV+ [1]. Half of those on Amazon Prime Video's ad-tier stated that they have Amazon Prime Video mainly because they subscribe to Amazon Prime [1].
In summary, advertisers seeking to reach consumers on SVOD platforms benefit from expanding ad-supported options which provide targeted ad inventory, while linear TV still delivers broad demographic reach but with declining younger audiences. Streaming services’ blend of ad-supported flexibility and subscription bundles creates new advertising opportunities adapted to changing consumer preferences and economic pressures [2][3][5].
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