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Analysis: Ad-Supported Streaming Outpaces Subscription Services as Streaming Becomes the Norm

Joshua Thiede
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Joshua Thiede

Advertising-supported video-on-demand (AVOD) services are gaining popularity across the United States much more quickly than their subscription VOD (SVOD) counterparts, according to a study by industry trends analyst firm Comscore Inc. During their “State of Streaming” webinar on Tuesday, Comscore expounded that AVOD adoption increased by 29% in U.S. households, while SVOD services only saw a 21% growth in the same timeframe.

Comscore’s vice president of product management James Muldrow views this rise in AVOD viewership as indicative of the current consumer mindset. During the first quarter of 2022, Americans became increasingly more attentive to their wallets, especially as inflation started to rise. Suddenly, AVOD became a much more attractive option compared to more costly premium options. In turn, this pushed streamers such as Netflix and Disney+ to pivot in order to keep budget-conscious consumers subscribed by integrating advertising into lower-tier subscription options.

Advanced Television also noted a number of trends highlighted at the “State of Streaming” event:

  • “The Big Five” moniker has been replaced by “The Big Six” as HBO Max joined the ranks of Netflix, Amazon Prime Video, Hulu, Disney+, and Peacock.
  • American households tuned in to 5.4 streaming services on average as of March 2022, an increase from 4.7 in the previous year.
  • Smart TVs have become the most popular streaming devices, averaging a 48% growth. Samsung TVs dwindling domination still holds at 26% market share, down from 2021’s 31%.
  • Netflix was the most-watched streamer with about 43 hours per household per month, followed by YouTube (39 hours/month) and Hulu (33 hours/month).
Joshua Thiede
Read full bio ›
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