The number of U.S. households using at least one ad-supported streaming service (AVOD) will grow at a compound annual rate of 6.7% between the end of 2021 and 2027, to reach 52 million, according to Parks Associations projections.
That projection factors in the late 2022 launches of AVOD tiers by Disney+ and Netflix, as well as AVOD tiers already available through Hulu, Paramount+, Peacock, Discovery + and HBO Max.
In comparison, subscription-based, ad-free video-on-demand (SVOD) subscriptions are projected to rise from 338 million at the end of 2021 to 450 million by 2027. That's a 33% increase over a six-year period, or a 5.5% CAGR.
About a third of U.S. households currently use at least one AVOD.
Offering a free, ad-supported option is “becoming a standard strategic move for streaming services,” notes Elizabeth Parks, the research firm’s president and CMO.