Wednesday, February 22, 2023

Consumers Favor Ad-Supported Streaming Services


Globally, 57% of consumers cutting back on SVOD subscriptions favor ad-supported streaming services, reports WARC Media. While no longer sufficient to support many media owners in isolation, advertising remains an attractive, high-margin source of revenue.

Netflix recently pivoted to advertising, signaling a watershed moment in video and audio streaming. Disney+ and Warner Bros Discovery have adopted ‘hybrid’ paid and ad-funded models. Audio streaming platform Spotify is improving margins through more sophisticated podcast advertising.

Laura Chaibi, Director, International Ad Marketing and Insights, Roku, said: “After years of proliferation of SVOD services, key media players are now moving to ad-supported business models to cater to consumers’ desire to access content for free and save money.”

Data from Roku found that 47% of streaming viewers plan to make changes to their services in the next 12 months. And according to GWI, 57% of those cutting back on SVOD subscriptions favour ad-supported streaming services.

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