On-Demand Has Surpassed Live Viewing Among Broadband Users; Will FAST Channels Lure Live Audiences to SVOD?
Data from Aluma Insights shows that on-demand viewing has surged among internet customers in the past two years.
Even as streaming services began to establish themselves as the next frontier of home entertainment in the mid-2010s, cable and satellite continued to reign as the top method for American households to watch video-based entertainment. But today, pay-TV penetration has fallen precipitously from the days in which over 100 million U.S. homes had a cable or satellite subscription. In 2023, the top four cable and satellite companies had just 46 million subscribers, and the number continues to fall. A new report from Aluma Insights demonstrates that these ever-increasing levels of cord-cutting have had a significant impact on the time viewers spend watching live, linear TV. But even though on-demand content has become the central form of entertainment, streamers should not shy away from adding live content in the future.
Key Facts:
- On-demand viewing now makes up 50% of total TV time for broadband customers in the U.S., up from 44% in 2022.
- Live viewing has dipped from 48% to 44% in the same time period.
- Customers are still engaging with live TV sources, which suggests streamers should incorporate live channels as Disney+ is preparing to do.
The data from Aluma shows that among broadband internet households in the United States, on-demand viewing has risen to 50% of total TV viewing time in 2024. Live viewing now accounts for 44% of TV time, while DVR recordings account for the final 6%.
The numbers are essentially an inversion of the methods used by viewers to watch TV just two years ago. In 2022, 48% of TV viewing among broadband customers was live, while just 43% was on-demand. Subscription video-on-demand (SVOD) services like Netflix, Hulu, and Prime Video have eaten into live TV’s share of viewing, as well as DVR’s.
Unsurprisingly, viewers who subscribed to legacy plans from cable and satellite companies — also known as multi-channel video programming distributors (MVPDs) — were more likely to watch live content as opposed to on-demand. Those who have never subscribed to a pay-TV service spend 64% of their TV time enjoying on-demand video.
“The shift from live to on-demand viewing is beyond doubt, though legacy MVPD subs remain the least observant of this trend,” Aluma wrote. “Networks dependent on live shows for advertising revenue are best served by buying MVPD airtime, especially that of legacy providers. Those leaning into on-demand viewing, conversely, should target PTV-frees and virtual MVPD subs.”
Do SVOD Services Have an Opportunity to Add More Live Content?
Live content doesn’t just come in the form of expensive sports games and other events that are shown live to air. It can also mean free ad-supported streaming channels that play a pre-selected lineup of content instead of asking the viewer to choose which titles they’d like to watch on demand.
The increase in on-demand viewing has also created more customer frustration over choosing new shows and movies to stream. A recent survey found that 54% of audiences spend more than six minutes trying to find something to watch, and that 30% take over 10 minutes to settle on a new title.
Live streaming channels with a pre-selected content lineup could be just the ticket for on-demand streamers. Aluma’s data shows that broadband customers are still attracted to live content, even if they watch on-demand titles more often. Adding more live channels could also help convince customers who currently prefer live TV to on-demand that streaming services are growing closer to the cable and satellite services they’ve come to know.
Disney+ already has reported plans to add free streaming channels to its app at some point in the future. These channels will feature Disney+ shows from the Marvel and Star Wars franchises, movies from Pixar, and more, and will only be made available to customers who are already paid subscribers.
Warner Bros. Discovery already operates a variety of free streaming channels on various platforms and has repeated its intentions to launch a free streaming platform of its own. Aluma’s data shows that WBD would be best served by bringing its free networks all together on its own service, pointing them to other titles paywalled on Max but also satisfying viewers’ desire for live content that doesn’t require them to make watching choices.
Internet households have made their preference clear: on-demand content tops live. But there’s still a good opportunity for on-demand video providers to offer live content, and any that do will likely find they have an easier time attracting viewers who enjoy live TV over on-demand video.
Disney+
Disney+ is a video streaming service with over 13,000 series and films from Disney, Pixar, Marvel, Star Wars, National Geographic, The Muppets, and more. It is available in 61 countries and 21 languages. It is notable for its popular original series like “The Mandalorian,” “Ms. Marvel,” “Loki,” “Obi-Wan Kenobi,” and “Andor.”