U.S. Ad-Supported Streaming Households Leap To 41% Share
- by Karlene Lukovitz @KLmarketdaily, November 13, 2023
The number of
U.S. ad-supported streaming households that report having recently used an ad-supported video-on-demand (AVOD) or free, ad-supported streaming (FAST) service leapt to 41% in this year’s third
quarter, from 31% in Q1.
That’s according to data from Parks Associates’ Video Service Consumer Insights Dashboard, which also finds 46% of U.S. internet households rate a streaming service as being "highly valuable" to their household.
“Streaming providers are raising prices and cracking down on account sharing in search of profitability, but consumers are struggling to make ends meet. Ad-supported business models are a win-win for both parties,” observes Parks Research Analyst Sarah Lee.
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Claimed "recent" usage of AVODs or FASTs is a very crude indicator of actual share of audience impressions. Since only 35-40% of all viewing is attained by streaming means and since ad-free services like Netflix still grab a major share of that, the AVOD/FAST share of total viewing time must be a fraction of that 35-40%---probably around 15-20%. Of course, such usage is increasing---that's hardly surprising as so many people are cutting the cord mainly to save money. But can AVODs and, in particular, FASTs be profitable ventures? That's the $64 Dollar Question.