Consumer Preferences for OTT Streaming Subscriptions

Innovative content engagement strategies are essential for maintaining a competitive edge. Subscriber engagement data is an increasingly valuable asset as media organizations must continuously assess, demonstrate, and predict the value of a service’s catalog within the licensing ecosystem. The ability to validate content performance enables content sellers and streaming services to buy and sell a greater variety of licensed content, optimize pricing, and satisfy audience demand.

Data-driven solutions that can measure and predict the profit generated by a specific asset, series, or even partnership enable media organizations to optimize pricing terms for both direct-to-consumer and licensed distribution, align offerings with specific audience interests, and optimize revenue models.

AVOD services offer a library of on-demand content users can access at any time, with advertisements interwoven at periodic intervals throughout the video stream in exchange for reduced or no-cost viewing. Popular AVOD services such as Tubi and Crackle Plus have built robust catalogs offering titles across a wide range of genres that appeal to a broader audience than more niche services. AVOD services offering quality content choices for consumers should see continued growth, especially during difficult economic times.

With OTT video advertising expected to reach $119 billion in 2023, much is at stake, with most of it riding on a service's ability to understand and predict viewer behavior and content engagement.

OTT and traditional linear TV are merging with the rise of FAST services. FAST services give consumers a similar linear TV experience to their Pay TV counterparts but with more niche content options that are free to watch. These services are rising in popularity, with brands like Pluto TV showing the highest adoption rate. In 2022, Pluto TV exceeded 70 million monthly active users and approximately 50,000 titles.

Consolidated ad-based household growth slowed to two percentage points from 2021 to 2022, when 33% of US internet households were using at least one ad-based OTT video service, representing just over 37 million US internet households.

Pluto TV, Tubi, Peacock, and The Roku Channel comprised the top tier of ad-supported streaming services in 2022. Each is watched in 9-11% of US internet households. Amazon Freevee (previously known as IMDb TV) led the group of the next-most popular services, with 6% penetration.

Furthermore, FAST has also seen the rise of new licensing partnerships, such as an agreement between Allen Media Group and Hearst Television announced in September 2022 under which Allen’s FAST service Local Now will carry a portion of Hearst’s Very Local news channels; AMC Networks also entered a multi-year, global agreement with Roku to expand AVOD content such as its WE tv channel.

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Join us for Future of Video 2023! Future of Video: OTT, Pay TV, and Digital Media brings together industry leaders to share insights on new trends in the video and connected entertainment industries, with insights on consumer behaviors and preferences and the challenges for the video industry in meeting these expectations. It features in-depth consumer and industry research on OTT services, the value of content, and the best strategies for building successful video services for today’s connected consumers. Register now: https://bit.ly/3ITtNYj