Americans adopting ad-supported streaming at faster rate than subscription-based servicesTuesday, June 14th, 2022
Americans Are Adopting Ad-Supported Streaming Services at a Faster Rate Than Non-Ad Subscription-Based Streaming Services, Signaling a Shift in the Market
RESTON, VA — Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting and evaluating media, today announced that ad-supported streaming services (AVOD) are seeing adoption at a faster rate than subscription-based services (SVOD), with a 29% increase in U.S. households streaming AVODs in 2022 compared to 2020 vs a 21% increase during the same period for SVODs.
That’s according to Comscore’s 2022 State of Streaming analysis, which examines the current state of streaming adoption, growth trends, services and solutions.
“While both ad-supported and subscription-based streaming services are growing in the U.S., we’re seeing that consumers are being more mindful of their budgets and leaning towards ad-supported services,” said James Muldrow, Vice President, Product Management at Comscore. “This makes sense as inflation continues to hit consumer’s wallets. The time is ripe for traditionally subscription-based streaming services like Netflix to consider launching an ad-supported tier to enhance their growth trajectory.”
Additional findings include:
- Households watched 5.4 streaming services per month as of March 2022, compared to 4.7 in March 2021, as “The Big Five” streaming services became “The Big Six” with the rise of HBO Max. In terms of audience overlap, Netflix has an 82% overlap with the other top six streaming services, especially Amazon (66%) and YouTube (66%).
- Diverse audiences, including African American, Asian, American Indian, and Hispanic populations, are a key driver of streaming growth, now accounting for more than 40% of Wifi-enabled households watching connected TV (CTV) in the U.S. In terms of the streaming platforms viewing days per household, African Americans over index for Amazon, FuboTV, YouTube, and Pluto.TV while Asians over index for HBO Max, Hulu, YouTube, and Sling. Accounting for the largest segment of diverse homes that stream, the Hispanic audience over indexes for Netflix, YouTube, FuboTV, and Sling.
- Smart TVs are the fastest-growing segment of streaming devices with 48% growth YOY. Samsung still dominates the Smart TV arena with 26% market share, but is down from 31% in 2021 as other players gain momentum: Alcatel/TCL now accounts for 15% and Vizio 14%. But with the lack of a unified measurement for all players, the rise of Smart TVs is ripe for viewability fraud. Comscore has data from 13 million Smart TV devices in-house from two major ACR providers. While this data set contains high-quality return path data, it also unlocks new reporting challenges from a standards perspective.
- 79% of Wifi-enabled homes are watching streaming content on CTV devices and each such household is spending about 122 hours per month doing so, a 19% growth from March 2021. Netflix captures the most hours per month watched at 43, followed closely by YouTube at 39 hours and Hulu at 33 hours.
- Amazon Prime Video has the highest resonance with the younger TikTok, Twitter, Snapchat & Twitch engagers, showcasing its strength in driving engagement with content & social marketing.
Comscore’s State of Streaming includes trends from 2019 to 2022 across its Comscore CTV Intelligence™, Comscore Connected Home™, Comscore Video Metrix Multi-Platform, Shareablee US PowerRankings, Shareablee Social Dynamics and Shareablee Metrics & Trends solutions.