Recently, the landscape of streaming services has witnessed a significant shift in consumer preferences. Consumers are now more open to ads and are willing to tolerate them, showing a new trend in their behavior. In today’s scheme, SVOD sign-ups in the U.S. represent nearly one-third, out of which 32% are partially ad-supported.
However, the scenario was different 4 years ago: According to the latest state of subscriptions report from research firm Antenna, the share of partially ad-supported SVOD plans was 18%, giving rise to a significant gap between periods.
Antenna results claim that a quarter of the subscriber base for U.S. premium streaming services is now partly funded by ads.
The acceptance rate of ad-supported plans varies widely from service to service. Pioneering operators of this type of modality count with a higher percentage of uptake unlike their competitors.
Antenna divided consumers into 4 groups in order to understand how they choose between discounted and premium ad-free options. An analysis that proved that the number of SVOD consumers who ignore ads decreases over time.
On the other hand, popular SVOD services are concerned about the potential impact of ad-supported streaming services and rising prices on user behavior. They fear that these factors may lead users to opt for more affordable alternatives.
Recent data from Samba TV reported that many new subscribers are signing up for ad-supported streaming video plans. This indicates a change in the industry’s traditional pattern. Findings from the company’s most recent survey highlight that these individuals are not “cord-cutters” or “downgraders”, but rather a new kind of streamer.
