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Q3 2024

Quantified Consumer

Ad-Based Streaming: Consumer Demand & Engagement

It is more expensive than ever to stream ad-free video, especially when the top services continue to raise their prices. Households subscribe to 5 streaming services on average, but as many face a steady loss of buying power, more are experimenting with ad-based services to help offset the growing expense of entertainment. This study documents the rise of ad-based streaming including both FAST and AVOD services. It analyzes why ad-based services are experiencing a surge in popularity, which services are the most popular, and household sentiment towards the ad-based experience.

Key questions addressed:

1) What is the state of the ad-based video streaming market?
2) What drives viewers to ad-based services?
3) How do viewers perceive the content on ad-based services?
4) What are the pain points viewers experience on ad-based services?
5) What would improve the ad-based experience for viewers?

 

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Video Services Ecosystem

Executive Summary

Use of OTT Video Services in Past 30 Days, by Business Model: Subscription (SVOD)

Use of OTT Video Services in Past 30 Days, by Business Model: Free Ad-Based (FAST/AVOD)

Likelihood of Moving OTT Subscription to Ad-Free Tier

Pain Points with Ad-Based OTT Services Among Ad-based Users

Net Promoter Score of OTT Services: Basic Tier vs Premium Tier

Reasons for Subscribing to Basic Tier with Ads by Services

Action Towards Price Increase for Streaming App Without Ads

Action Towards Price Increase for Streaming App Without Ads by Ad Relevance Influence

Interest in T-Commerce

Interest in T-Commerce by Ad Relevance Influence

Streaming Market Overview

Penetration of Traditional vs. OTT Video Services

Number of OTT Service Subscriptions

Use of OTT Video Services in Past 30 Days, by Business Model

Free and Subscription Ad-based Streaming Adoption

Overlap of SVOD and Ad-Based Streaming

Demographic Breakdown of Video Service Users

Trends in Monthly Spending on OTT Video Services

Primary Connected TV Platform

Ad-Based Streaming Trends

Use of Leading Free Ad-based Video Services

Attitudes Towards Video Services

Attitudes Towards Video Services by Age Group

Drivers for Using Free Ad-Based OTT Services

Attitudes Towards Video Services by Age Group

Pain Points with Ad-Based OTT Services

Free Ad-Based Service Viewing Frequency

Frequency of Watching Free Ad-Based Services

Ad-Based Service Viewing Frequency by Attitudes Towards Content Seeking

Genres of Online Content Viewed by Ad-Based OTT Subscribers

Subscription Advertising Tiers

Trends in Use of Basic with Ads or Premium Ad Free Tier for Major SVOD Services

Reasons for Subscribing to Basic Tier with Ads

Reasons for Subscribing to Basic Tier with Ads by Services

Likelihood of Switching from Premium Tier to Basic Tier with Ads

Likelihood of Switching from Premium Tier Services to Ad-Based Service Tier by Services

Net Promoter Score of Leading OTT Services: Trending

Net Promoter Score of OTT Services: Basic Tier vs Premium Tier

Reasons for Cancelling Service

Incentives to Prevent Churn

Impact of SVOD Price Increases on Ad-based Services

Action Towards Price Increase for Streaming App Without Ads

Action Towards Price Increase by Gender

Action Towards Price Increase by Generation

Action Towards Price Increase for Streaming App Without Ads by Children at Home

Action Towards Price Increase by Type of Premium Service Subscribed

Action Towards Price Increase by Consumer Attitudes

Action Towards Price Increase for Streaming App Without Ads by Ad Relevance Influence

Likelihood of Moving OTT Subscription to Ad-Free Tier

Likelihood of Moving OTT Subscription to Ad-Free Tier by Age

Likelihood of Moving OTT Subscription to Ad-Free Tier at $14.99 by Leading Ad-based Video Services

Interactive Advertising and T-Commerce

T-Commerce Activities

Interest in T-Commerce

Interest in T-Commerce by Age Group

T-Commerce Activities by Interest in T-Commerce

Interest in T-Commerce by Ad Relevance Influence

Preferred Interactions with Ads

Appendix

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