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53% of Streamers Would Watch Ads to Make a Streaming Service Cheaper

Stephanie Sengwe

As the pandemic continues to rage on and people are looking for more ways to stream, it seems like the pivot toward AVOD services is only growing stronger. A new study by VAB titled, ” A Sea Change in Video Viewing: Helping Marketers Find More Fish in the Streaming Ecosystem,” found that not only are people turning toward AVOD more than SVOD, but they are actually keen for more of the former.

The study found that four out of ten adults wish there were more free streaming video services. In fact, 53% of respondents didn’t mind that ads make their streaming services cheaper. This is a bit lower than what most streaming services see themselves, where about 70% of subscribers choose the ad-supported vs. the ad-free plan.

The study also found that 57% percent of respondents wish there were discounts for bundling certain streaming services.

“Viewers have revealed a huge appetite for quality video content and are seeking out free ad-supported streaming services in greater numbers,” said Kathy Grey, VAB’s senior vice president, Innovation Research. “Sea Change’s findings reveal people of all ages and demographic groups have become more comfortable using streaming services, especially those that are advertiser supported, making AVOD a smart addition to media plans.”

VAB also found that quality content remains paramount to viewer retention. 72% of AVOD users revealed that they like the large selection of TV shows and movies their streaming content service offers, while 67% said they enjoyed having access to full libraries of shows, both past and present. Original content remained a lure, with 60% of respondents saying they enjoy original programming on their platforms.

VAB’s study also corroborated some of Tubi’s findings from earlier this month. A study conducted by Tubi in conjunction with OnePoll found that one in four respondents ages 18-34 revealed they’ve cancelled an SVOD streaming service in favor of using an AVOD streamer in the past few months. The survey also found that 37% of people would try a new streaming service with ads to discover new content.

Similarly, VAB found that 46% of their respondents said they’ve been streaming more free ad-supported video content than paid content, with majority not willing to pay more that $20 per month.

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