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Consumers Prefer AVOD Services to Help Reduce Streaming Subscription Costs

Aubrey Meister

The streaming market is growing rapidly, giving consumers more choices and more services to pay for each month. As consumers fine-tune their streaming service lineups, they are finding that subscribing to so many services can become pricey. For this reason, ad-supported video-on-demand (AVOD) services are continuing to grow in popularity.

A new study from Future Today shows that over half of all TV viewers prefer ad-supported services. 35.2% of consumers choose AVOD services because of the free channels available. Because ad-supported services are more affordable than ad-free services, consumers can subscribe to many of them without breaking the bank.

This also gives people access to much more content at little to no extra charge. Other recent studies have shown that consumers don't mind ads, especially when if it means they can stream at a lower cost.

There are several other reasons why consumers prefer AVOD services, including show selection, on-demand access, and ease of use.

Future Today’s study shows that many consumers no longer want to pay for so many subscriptions, which is why ad-supported services have caught their interest. Per the study, 13.5% of consumers have quit using a streaming service in the past year. In the next six to 12 months, 35.5% of consumers plan to cancel some of their subscriptions. 26.8% of consumers plan to subscribe to additional services within that same time frame.

The study found that 74.9% of TV viewers watch streaming video-on-demand services for an average of 5.33 hours per week. 59.3% watch AVOD services for an average of 2.78 hours per week, while 45.2% watch FAST (free, ad-supported streaming TV) channels for around 2.45 hours each week.

“Consumer viewing preferences continue to evolve. Streaming has become the de facto source for watching TV shows and movies, but not all services, platforms, and models will thrive in this shifting media landscape,” said Vikrant Mathur, CEO and Co-Founder of Future Today.

“Despite some pundits’ expectations, we’re seeing AVOD adoption flourish, and expect this trend will continue to grow for years to come. Our research solidifies that with the right viewing experience, the ad-supported streaming model is ideal for content owners, brands, and most importantly, audiences,” Mathur concluded.

There are many ways to reduce streaming costs, including using free services. To help you get started, The Streamable has reviewed the free services available and compiled a guide, which you can find here.

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