Research: Faster adoption of AVoD in the US than SVoD
Findings from Media Rating Specialist Comscore Streaming Status 2022 suggest that AVoD services are being adopted at a faster rate than SVoD, with a 29% increase in the number of US households streaming AVoD in 2022 compared to 2020 compared to a 21% increase over the same period for SVoD.
“As ad-supported and subscription-based streaming services grow in the United States, we’re seeing consumers become more budget-conscious and shift to ad-supported services,” said James Muldrow, vice -President, Product Management at Comscore. “It makes sense as inflation continues to hit consumers’ wallets. Now is the time for traditionally subscription-based streaming services like Netflix to consider launching an ad-supported tier to improve their growth trajectory.
Additional findings include:
- Households watched 5.4 streaming services per month in March 2022, down from 4.7 in March 2021, as “The Big Five” streaming services became “The Big Six” with the rise of HBO Max. In terms of audience overlap, Netflix has an 82% overlap with the other six major streaming services, particularly Amazon (66%) and YouTube (66%).
- Diverse audiences, including African American, Asian, Native American, and Hispanic populations, are a key driver of streaming growth, now accounting for more than 40% of Wi-Fi-equipped households watching Connected Television (CTV) in the states -United. streaming platforms viewing days by household, African Americans on the index for Amazon, FuboTV, YouTube and Pluto.TV while Asians on the index for HBO Max, Hulu, YouTube and Sling. Representing the largest segment of diverse households that stream, Hispanic audiences on the Netflix, YouTube, FuboTV, and Sling indexes.
- Smart TVs are the fastest growing streaming device segment with 48% year-over-year growth. Samsung still dominates the Smart TV arena with 26% market share, but is down from 31% in 2021 as other players gain momentum: Alcatel/TCL now accounts for 15% and Vizio 14%. But without a unified measure for all players, the rise of smart TVs is ripe for viewability fraud. Comscore has in-house data for 13 million Smart TV devices from two major ACR vendors. While this dataset contains high-quality return path data, it also opens up new reporting challenges from a standards perspective.
- 79% of households with Wi-Fi watch streaming content on CTV devices and each of those households spends about 122 hours per month on it, a 19% growth from March 2021. Netflix captures the most hours per month watched at 43, closely followed by YouTube at 39 and Hulu at 33.
- Amazon Prime Video resonates the most with young users on TikTok, Twitter, Snapchat and Twitch, demonstrating its strength in driving engagement with content and social marketing.