Ad-Based Streaming: Consumer Demand & Engagement

Description

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.

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