Why Are Cord-Cutters Choosing Free Streaming Services Over Premium Paid Streamers Like Netflix and Disney+?
Why Are Cord-Cutters Choosing Free Streaming Services Over Premium Paid Streamers Like Netflix and Disney+?
People are flocking to free streaming services for a variety of reasons.
“You get what you pay for” is a trusted axiom, and mostly because it ends up being true. It’s hard to count on so-called free services in any walk of life, either because they end up having a hidden cost attached to their use or because they simply don’t have the resources to offer a reliable product.
- New data from MNTN Research shows that low price is not the only reason users are flocking to free ad-supported TV platforms like Pluto TV.
- Wide selection of content and organization are among the top reasons given for the popularity of FAST services.
- There are already more than 70 million FAST users in the United States, and MNTN expects that number to reach nearly 80 million by 2027.
Do FAST Platforms Have Better Content, Discovery Mechanisms Than Paid Streaming?
The phrase “You get what you pay for” is undeniably applicable in most circumstances, but it seems in the streaming world it is possible to get a fantastic product without having to pay for it. Free ad-supported TV (FAST) platforms that offer live streaming channels and ad-supported video-on-demand (AVOD) content like Pluto TV, Tubi, and The Roku Channel offer thousands of hours worth of entertainment at no cost to users, and new data released by MNTN Research shows that people are flocking to such services for other reasons than the agreeable price.
The numbers from MNTN’s charting of a Vevo/Pulbicis media survey show that content is one of the top reasons viewers choose FAST platforms. At a rate of 75% or higher, FAST viewers agree that such services offer a great selection of TV shows and movies and that the services are well organized, easing the path to content discovery. Perhaps most surprisingly, 65% of FAST viewers say the services offer the best content, better even than paid premium streaming platforms such as Netflix. Self-identified FAST lovers agree with all of these points to an even higher degree, as can be seen in MNTN’s chart below.
SVOD platforms are notorious for having user interfaces that make it tough to find something to watch next, so it’s no surprise to see that FAST platforms are so much more highly regarded. The global streaming library has surpassed 2 million titles overall, and users spend an average of more than 10 minutes trying to find something to watch. That makes ease of content discovery key, and the data makes it clear that FAST platforms are outperforming subscription streamers in this metric so far.
How Many FAST Users Are There?
MTNT cites data from Statista which shows that as of October 2023, 70.3 million people watch free ad-supported TV in the United States. That’s a jump of more than 7 million viewers in just one year, and the trend is expected to continue; by 2027, Statista forecasts that the number will rise to nearly 80 million. Considering the FAST audience has risen by 22 million users in the last four years, that estimate for the next four years could even be a bit low.
What lessons does this data hold for SVOD providers? As prices for ad-free streaming continue to increase, more and more users are finding free streaming platforms a viable alternative. The exclusivity of content on SVOD platforms will ensure they continue to have a robust customer base, but they must do better in improving their user interfaces and smoothing the path to better content discovery if they expect customers to continue paying higher subscription costs.
Subscription video services undoubtedly do a better job of delivering prestige TV and live sports than FAST platforms do. But outside of those categories, customers are seemingly much more fond of their experience on free streaming services, and SVOD operators have to improve their UX if they expect customers to continue absorbing price increases.
