Jeff Green, CEO of The Trade Desk, says -- along with many others -- that there is SVOD fatigue for new subscribers.
Well, there is some vested business interest at stake here. Green presides over one of the largest demand-side platforms for advertisers and media agencies -- one that keep talking up the rising connected TV media business, a strong subset of ad-supported services.
But according to a new survey from Digital Entertainment Group (DEG), there’s another picture: Total U.S. spending on subscription services grew rose 21% in the first six months of 2021 to $12.2 billion, and up 17% in the second quarter to $6.3 billion.
All this comes a year after strong at-home entertainment growth, due to the pandemic.
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So which service is really tiring?
The reality is that premium streaming services give plenty of options for consumers -- no advertising/fee-based, limited advertising/fee-based, and ad-supported/free -- among them.
One note here: The DEG survey appears to focus on subscription fees -- whether attached to advertising support or not.
From this research, consumers are taking two sides: Those wanting TV with no advertising; and those who don’t want any monthly streaming fees -- and don’t mind the ad messaging.
Both points of view are understandable. For the latter, one argument is virtually all those ad-supported options have limited commercial interruptions of just four-to-five minutes per hour of programming.
Still AVOD seems to be growing -- high demand from TV marketers looking for the reach lost from linear TV. Conversely, TV networks continue to angle for greater digital-connected premium TV ad advertising from lost linear TV impressions.
Consider the current situation: Nielsen says streaming, across all TV homes, now has a 26% share of total day usage of television among persons aged 2+. But streaming "ad-supported" platforms only comprise a 4% share.
The race thickens for some -- especially those looking for a single winner. That might be the big vision, glossy picture. But in the reality of the growing complex digital world, winners may be everywhere.