Survey: 75% of Viewers Use a Free Streaming Service with Ads; Majority of Audiences Prefer Streaming to Linear
There’s been a lot of data made available in the past week to show the rising costs of streaming. One study found the cost of ad-free streaming plans had increased 25% in the past year alone, and another found that once Disney enacts its next round of price increases in October, a bundle of the top American streaming services now costs $87 per month, more than the average cable subscription.
Despite those figures, Americans are not souring on streaming in any way. That’s according to a new survey from LG Ad Solutions, which found that 71% of its 1,017 respondents preferred streaming to watching TV via cable or broadcast channels. Among the top reasons given for this preference, being able to watch video at one’s own pace and having more content options in general were the leaders.
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Content discovery is also easier on streaming than on traditional TV according to LG’s survey. Despite a study from earlier this year that showed streaming users spent longer than 11 minutes on average trying to decide what to watch next, LG found that 74% of respondents said finding new content was easier on streaming versus linear TV.
On the flip side of that coin, users did note that too much content is sometimes a barrier to streaming. This was especially prevalent among older viewers, but at least 27% of all age groups surveyed said that they were sometimes paralyzed by the sheer volume of content being presented to them on streaming.
It will behoove streamers to identify a user’s comfort show to combat this specific problem moving forward, as 80% of respondents to the LG survey said they had such a program. More than half (55%) said they watched their comfort show frequently or daily, making the service that the show is on indispensable.
The new study also shows how viewers are using free ad-supported streaming to supplement their entertainment library. Fully 75% of audiences now use a free ad-supported streamer, and 54% say this is done purposefully to keep streaming costs in check. LG’s data found that while the cost of streaming may have risen in the past year, the amount people actually spend on streaming is still less than cable; an average of $62 per month versus an average of $95 per month spent on pay TV. Exclusive content is the highest driver of demand for free ad-supported TV (FAST) services, and FAST channels may incorporate more exclusive content in the future as branded channels proliferate.
Streaming has undoubtedly gotten more expensive in recent years, but customers are apparently willing to put up with price increases, as they clearly prefer streaming to the traditional TV experience. Users are also incorporating free ad-supported streamers like Tubi and The Roku Channel to fill in any gaps in programming as they try to keep their streaming budget under control.
Roku Channel
The Roku Channel is a free live TV streaming service that provides 350+ live linear streaming channels and more than 80,000 free movies and TV shows. The library contains entertainment from several different decades, including some major hits.