Video Streaming & Consumer Trends

Streaming Adoption

• Over 254M (75% of the U.S. population) will watch OTT streaming services this year including SVOD, AVOD and FAST services. (e-Marketer, 2024)

• The number of global OTT service subscriptions is expected to increase from 1.6 billion in 2023 to 2.1 billion by 2028. (PWC, July 2024)
• Average Number of DTC Streaming Services by Age (Leichtman Research Group, 2023)
• A18-44: 4.8
• A45-54: 4.0
• A55+: 2.5
• Netflix is the streaming service with the most subscribers (247.2 million)* followed by Amazon Prime Video (200M) and Disney+ (150.2M) (Digital Trends, 2024)

*Note: Disney’s latest Q3 2024 number is 153.8M

The actual Q2 ending number reported in the trades is 277.6 for Netflix

• Netflix is currently the most subscribed video streaming service, with 260.28 million subscribers worldwide. (Forbes, 2024)

• For the first time, the “Big 5” SVOD services (Netflix, Prime Video, Hulu, Disney+ and Max) experienced a decline in subscribers since last year with fewer households opting to stack three or more. (Hub Entertainment Research, 2023)

• 84% of consumers cite ease of content discovery as important for choosing to subscribe to a video/service provider. (CTAM, Magid Research, 2024)

Streaming Media Devices

• 90% of U.S. Internet households use smart TVs and streaming media players as their primary viewing devices with gaming  consoles and smart Blu-ray Disc players getting increasingly squeezed out. (Parks Associates)
• Smart TVs vs. Streaming Media Players (Parks Associates, 2024)
  • 68% of U.S. Internet households own at least one smart TV
  • 46% of U.S. Internet households own at least one streaming
    media player

• Roku is the most popular brand of streaming media players, followed by Amazon’s Fire TV. (Parks Associates, 2024)
• 43% of consumers report using Roku most often
• 35% of consumers report using Amazon Fire TV most often

Streaming Costs & Churn

• The vMPVD market is also highly volatile with two-fifths (40%) of vMPVD subscribers subscribing for less than 6 months and 70% less than one year. In addition, 42% are very likely/likely to cancel in less than one year. (Horowitz Research)

• About 25% respondents say they would cancel any streaming service subscription if they cracked down on password sharing or over higher prices. (Forbes Home, 2023)
• The cost of overall OTT ($75 avg monthly cost) is approaching the cost of the MVPD video ($91). (Horowitz Research)
• The cost of overall OTT ($75 avg monthly cost) is approaching the cost of the MVPD video ($91). (Horowitz Research)

• Fewer cord-cutters feel they are saving “a really good amount of money” (39%). (Horowitz Research)

• 45% have canceled a streaming subscription within the last year because costs were too high. (Forbes, 2024)
• Viewers Favor Choice and Quality in TV but Complexity Makes Choices Harder: Although consumers are attracted to the variety of choices and quality in TV options, over 51% reported “too many shows” making overall TV content choices harder to make. (Hub Entertainment Research Aggregation Study, 2023)

• Streaming reached a record 40.3% share of U.S. viewing in June 2024. (Nielsen)

Aggregating Streaming Networks

• Consumers express specific interest in universal search features, a central hub and tailored recommendations when it comes to streaming and TV services. (CTAM/ Magid Content + Connectivity, 2024) 

• Integrating SVOD and FAST streaming subscriptions into customer’s pay-TV services has the opportunity to increase value and renewal rates, with customers most interested in features that simplify their viewing experience. (Hub Entertainment Research: Aggregation Study)

• Integrated SVOD Services Create Pay-TV Subscription Value: MSO subscribers with at least one SVOD service integrated into their TV service are 50% more likely to give high value ratings and report being more likely to still have pay-TV subscription in a year (69%). (Hub Entertainment Research Aggregation Study, 2023)

• Six in 10 (61%) streamers would be likely to switch to a bundle of subscription streaming services from one provider if this option were available. (Source: Horowitz – April 2023)
• Bundling services offer numerous benefits for consumers such as consolidating bills, content, and log-ins into a single point of access. (CTAM/ Magid Content + Connectivity, 2024)

• Instead of subscribing to more services, consumers are bundling what they already have with 45% of consumers self-bundling Pay TV with SVODs—whether it’s MVPD + SVODs, mMVPD + SVODs, or other combinations. (CTAM/ Magid Content + Connectivity, 2024)

• 59% said that even with an additional charge, they would be willing to pay for an app that would allow them to manage, use, and pay for all of their subscriptions in one place. Source: Hub Entertainment Research, December 2023)

(Bango’s Subscription Wars—Super Bundling: Global Trends, 2024)

• 1 in 3 U.S. subscribers now pay for a service they never use
• 35% have lost track of how much they spend on subscriptions each month
• The trend is not a uniquely U.S. subscriber issue, as Latin American and European subscribers also find it hard to keep track of their subscriptions
• Three-quarters of U.S. subscribers report having a “forever subscription,” one that users never pause or cancel
• 54% of U.S. subscribers said they would spend more time using their subscription services if an all-in-one platform was available

Understanding the evolving preferences of multicultural communities is essential for delivering content that resonates with diverse audiences, and to ensure that entertainment offerings are inclusive and relevant to their unique cultural needs.

Hispanics Are Top Streaming Adopters, Crucial Audience for CTV Advertisers
Survey finds Hispanics are one of the most avid adopters of streaming media and underscores their significance for CTV advertisers. (LG Ad Solutions’ The Inclusive Screen: Hispanic Americans, August 2024)

• 78% of Hispanic Americans prefer streaming to traditional TV, citing the following as primary reasons why:
  • ability to watch at your own pace (82%)
  • wider range of content options (69%)
  • easier content discovery (62%)
• 43% of Hispanic CTV users report family/friends as a top source to find new content
• 37% point to specific app home screens and the TV screen homepages (33%) as top sources
• 4 in 5 Hispanic households watch a mix of Spanish and English language TV
• 69% of Hispanic CTV users prefer streaming free video content with ads instead of paying for a subscription without ads
• 41% of Hispanic CTV users reported searching online after seeing a streaming ad, while 40% visited a brand’s website

Asian American Viewers Value In-Language Content and FAST Channels
Critical Factors in Attracting Asian American Subscribers (Horowitz FOCUS Asian Volume I: Subscriptions 2024)

• 54% of Asian Americans watch at least some Asian-language content
• 45% say content from their country of origin or heritage is valuable for them
• 44% say international content is valuable for them
• 64% (of Asian-language dominant and bilingual Asian TV content viewers) say content in an Asian language or geared toward Asian American audiences is critical when considering which services to subscribe to for entertainment content
• 67% subscribe to at least one SVOD (with an additional 10% who have access without a fully paid subscription via password sharing or bundling)

Netflix and Amazon Prime Video top the list of most-used subscription streaming services among Asian American viewers. However, Asian-targeted SVOD services including Rakuten VIKI, OnDemandKorea, and ZEE5 that offer in-language content play a role in viewership.

• 73% of Asian American audiences overall (up from 23% in 2019) use FAST Channels
• 85% of Asian-language dominant viewers specifically use FAST channels
• Asian American viewers are more likely to use Samsung TV PLUS and XUMO than consumers overall

Hispanic Households Outspend and Outstream U.S. Average
Hispanic-identifying households are more inclined to pay for streaming services and maintain their subscriptions when the content aligns with their interests. (Parks Associates’ North American Streaming Video Tracker, July 2024)

• Spanish-speaking households in the U.S. outspend the average household on subscription streaming video services (SVOD) by about $20
• 96% of Hispanic-identifying households subscribe to at least one SVOD service, which is 8 percentage points higher than the average overall household
• Hispanic-identifying households use an average of 6 SVOD services, compared to slightly under 5 for the average household
• The average Hispanic-identifying household spends $96 per month on SVOD subscriptions, compared to $76 in the average U.S. household

• The U.S. market makes up around 80% of free ad-supported streaming TV (FAST) revenue, which totals around $6.3 billion globally in 2023. (Source: Omdia, 2023)
• About 33% of the U.S. population and 44% of over-the-top video viewers will watch free ad-supported streaming television (FAST) in 2024. (E-Marketer, 2024)

• FAST channels are expected to see a 5.4% increase in viewership this year with The Roku Channel taking the lead. (eMarketer, 2024)
• The number of unique FAST offerings are projected to increase this year, reaching 1,943 channels. (Deadline, 2024)
• Free ad-supported TV (FAST) channels like Pluto TV, Roku Channel and Tubi accounted for 4.3% of streaming, beating out Peacock, Max, and Paramount+, which totaled 3.7%. (Nielsen, 2024)

• By 2025, 76% of subscription streaming services that don’t currently have ad-based options will introduce them with 59% planning to implement a hybrid model in order to lower the price of subscriptions. (NPAW, 2023)

• FAST (free ad-supporting streaming TV) ad spend is projected to surpass that of cable, broadcast or SVOD services in ad spend by 2025. (TVREV, 2023)

• FAST will account for 68% of ad spending by 2027, or $69B of $101B. (TVREV, 2023)
• Ads will provide nearly 28% of streaming services’ revenue by 2028. (PWC Global Entertainment and Media Outlook 2024-2028)
• Premium streaming platforms increased ad revenues by almost 50% year-to-year during the third quarter in 2024, reaching $3.8 billion. (MoffettNathanson, Q3 2024 Analysis)

• For the 11 top premium streamers, 2024 revenue estimates for AVOD platforms are projected to grow 39% to $14.3 billion. (MoffettNathanson, Q3 2024 Analysis)
• Notably, political advertising significantly boosted revenue for platforms like Max, Discovery+, Tubi, Pluto, and Roku. (MoffettNathanson, Q3 2024 Analysis)

• Consumers understand the trade-off between free and commercials as 81% of free streaming service subscribers and 69% of SVOD subs are willing to accept commercials/ads. (Source: Magid’s Video Entertainment Pulse Study)

• 50% of streaming users pay for a streaming service without ads, with 24% reporting that they specifically pay to avoid ads and prefer an uninterrupted viewing experience. (Forbes, 2024)
  • 26% are unsure whether their subscriptions include ads or not, suggesting a degree of ambiguity or indifference towards the presence of ads in streaming content. (Forbes, 2024)
• Almost seven out of ten (69%) consumers are interested in having an improved ad experience—one that enhances their viewing and uses the capabilities of today’s technology. (CTAM/ Magid Content + Connectivity, 2024)

• 62% of AVOD & SVOD streamers prefer a standard video ad format. (tubi + FOX, 2023)

• 51% of streamers are satisfied with 6 minutes of ads per hour. (tubi+FOX, 2023)
• Overall, 29% of adults 18+ perceived that streaming TV ads were effective compared to 32% of those for linear TV ads, with strongest perceptions of effectiveness among older adults for linear TV ads (40% for adults 50+ and 33% for adults 35-49 for streaming ads). (The State of Media, Entertainment, and Tech: Consumer Engagement– Horowitz Research, 2023)

• Not surprisingly, adults 18-23 and 35-49 are more likely than adults 50+ to find text messages, social media posts, influencer sponsorships, ads in podcasts, and ads in music streaming services much more effective. (The State of Media, Entertainment, and Tech: Consumer Engagement– Horowitz Research, 2023)

• The live-streaming segment accounts for 63% of the video-streaming market. (Global News Wire, Maximize Market Research)
• Over 3.26 billion people around the world engage in video games as of 2024, representing nearly half the global population. (Forbes)
• Globally, with 3 billion video game players, 2.8 billion of them (93%) play online. (Statista)
• 27% of gamers spend 1 to 5 hours streaming video games per week. (Forbes, 2024)
• Live-stream gaming and eSports are the most-watched categories, with 54% viewership followed by music, sports, and entertainment (17%), professional content (9%), and IRL (6%). (Demand Sage, December 2023)
• Live-stream gaming and eSports sectors are projected to surpass 900 million viewers in 2024. (Statista)
• Online gaming makes up most of the gaming industry as 60% of gamers play games on their smartphones. (Demand Sage, December 2023)
• 82% of consumers prefer to engage with a brand on a live stream rather than through social media posts. (LiveStream)
• Over one-third (35%) of marketers use live videos to market their products with 28% of marketers investing more in live streaming. (go-globe)
• Over six out of ten (63%) marketers plan to increase their use of live videos in the future. (TechJury, Statista, Forbes and Content Marketing Institute)

What is OTT?

“Over the top” (OTT) services refer to any type of video or streaming media that provides a viewer access to movies or TV shows by sending the media directly through the internet

^{*Collins English Dictionary}

OTT Streaming Types and Examples

• SVOD = “subscription video-on-demand” in which a viewer sets up a monthly or yearly streaming subscription agreement for a flat monthly fee
• DTC = “direct-to-consumer” streaming service is when a network or streaming channel sells their service directly to the consumer bypassing retailers and wholesalers
• TVOD = “transactional video-on-demand”, which earn revenue via singular transactions “pay-per-view”
• AVOD = “advertising video-on-demand” services, which earn revenue from ads placed in streaming services
• FAST = “free ad-supported streaming TV services” are essentially live streaming services without the subscription and typically are an extension of traditional linear TV channels

Content + Connectivity Consumer Insights: Opportunities for the Future Video Viewing Ecosystem

CTAM Commissioned Study with MAGID Research
June 2024
With consumers facing an ever-growing complexity of video service options, discover how to create a centralized experience to simplify, optimize and personalize their viewing experience.

2024 Evolution of the TV Set

Hub Entertainment Research
June 2024
In 2024, Smart TVs, with their advanced viewing features and declining prices, are becoming the dominant device for home TV and streaming, surpassing streaming media players due to their all-in-one convenience and improved operating systems that influence viewing habits.

CTAM Wired Webcast: Streaming TV’s Great Divide

January 25, 2024

Challenged budgets are impacting retail spend and fostering SVOD cycling as consumers pay 32% more for groceries and 26% more for general merchandise products then before the pandemic. Explore the resulting great divide between basic and premium TV and perceptions of bundles that offer MVPDs new revenue streams.

The Engagement Equation: Navigating Choice Overload for Viewer Success

Delve into how the explosion of streaming services and the era of Peak TV which has provided consumers with an unprecedented array of options, often leading to decision paralysis and choice

Marcien Jenckes, President of Xumo, on Engaging Audiences and Innovation

Uncover insights into a holistic approach aimed at captivating audiences and monetizing content through advertising

The Fusion of Tech, Content, and Partnerships in Entertainment

Explore how to navigate the ever-changing media landscape by utilizing new technology, data, and information to engage diverse audiences