SVOD Dips In UK, AVOD On The Rise In Latin America

In trends paralleling those in the U.S., new data on some key international markets are showing subscription-based video-on-demand (SVOD) subscriptions flattening and demand for ad-supported VOD (AVOD) on the rise.

In the UK, a survey by audience measurement firm Barb found 19.08 million homes, or 67.4% of households, having access to at least one SVOD service in Q1 2023 — down 1.7% from 19.42 million in Q4 2022.

That was despite gains by Apple TV+, which saw its households rise 13%, to 1.91 million in Q1 2023 versus Q4 2022, and Sky’s NOW service, which saw an 8% gain, to 2 million households.

Netflix, Prime Video and Disney+ saw small quarterly drops in the number of UK homes with access to their services. Netflix was down 1.1%, to 16.69 million; Prime Video down 1.7%, to 12.90 million; and Disney+ down 1.9%, to 7.14 million.

Meanwhile, in Latin America, 83% of connected viewers in Argentina, Brazil, Colombia and Mexico are now watching ad-supported streaming content on TVs or other devices, according to supply-side platform Magnite.

In addition, those viewers are watching 15 hours of streamed programming per week, on average—the same amount as ad-free streaming viewers.

Pointing to more of a shift to ad-supported ahead, nearly three quarters (71%) of ad-free Latin American streamers said they would likely use a new ad-based streaming service if it was free or offered a reduced cost vis a vis ad-free streaming.

According to Magnite, LatAm streaming TV viewers are cross-device consumers, and exposure to brands across multiple devices drives purchasing intent, and 88% of ad-supported streaming viewers are more likely to make a purchase from a brand that they engaged with across multiple devices.

Eighty-three percent of ad-supported viewers say they find the connected TV ads to be trustworthy.

Nearly all (96%) say that streaming TV is a good value as a source of entertainment, 94% say it offers better programming than traditional TV, and 83% say that streaming TV is a “must-have” in their households.

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