Free Streaming Platforms Could Be Big Winners from Writers, Actors Strikes; 90% of Audiences Stream Video with Ads
Ad-supported streaming is one of the best ways to replicate the traditional linear TV experience. Many ad-supported streaming platforms offer free ad-supported TV (FAST) channels, which mimic traditional TV by playing a pre-set programming block live for audiences instead of forcing them to choose which titles they’ll watch next.
Samba TV’s “State of Viewership” report for the first half of 2023 indicates that 90% of adults who stream video in the United States watch an ad-supported source. Most frequently, users are signing up for one or two paid subscription video-on-demand (SVOD) services like Disney+ or Hulu, and supplementing those platforms with one or two free ad-supported services like Pluto TV or The Roku Channel.
Most streaming households watch three services or less, with 60% falling into this category. But the number dips to 46% when looking at households that watch two services or less, showing that ad-supported streaming is indeed helping users justify stacking more services because of its lower price point.
There’s an opportunity for free streaming platforms to grab an even bigger market share if the Writers Guild of America (WGA) and Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA) strikes continue into the fall and winter. Samba’s data already shows that Netflix, Disney+, Max and Prime Video are already driving lower average daily reach in the second quarter of 2023 as compared to Q1. Strikes that cause holes to appear in fall programming schedules could exacerbate that issue greatly.
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If streaming customers don’t see the value in continuing to pay for services that aren’t releasing new content, it could be a chance for free streamers to pick up huge swaths of viewers. FAST platforms specialize in offering so-called “lean-back” content, which asks customers to just sit back and enjoy watching what’s on rather than having to lean forward, pay close attention and skip around to new content once the current title is finished. FX head John Landgraf estimated that 80% of all TV viewing is of the lean-back variety, and if the other 20% isn’t being filled in by new scripted series this fall, it leaves that much more market share for FAST services to snatch up.
It’s looking more and more likely that the strike will affect content slates around Hollywood this fall, and broadcasters could see a big decline in advertising revenues from a prolonged strike. Those ad dollars could go to platforms like Amazon’s Freevee, if viewers decide to leave their paid streaming services behind for free ones amidst an extended dual strike from writers and actors.
Freevee
Freevee is a free video streaming service that includes on-demand access to thousands of movies and TV shows. The service also offers 400+ virtual live streaming channels like Dove Channel, CON TV, Docurama, Tastemade, and AMC Presents. Freevee was previously known as IMDb TV.