Premium Subscription Channels Race to the Bottom (Line)
by Isabel Greenfield
6 Min Read
3 Min Read
A new survey from Hub Entertainment Research reveals that more than half of Connected TV viewers (56%) say they would choose a platform with ads to save as little as $4-$5. Of those surveyed who described themselves as “intolerant” of ads, 30% reported that they would choose an ad-supported platform if it saved them money. Content and quality were reported as the most important factors in choosing streaming platforms to subscribe to—only 36% of respondents who recently signed up for an ad free platform mentioned lack of ads as their main reason for subscribing, while more mentioned library selection (38%), exclusive shows (41%), and value for the money (42%).
The report also found that many consumers find watching ads on Connected TV to be a completely different experience than on linear, due to CTV’s lower ad loads, fewer breaks, and more relevant TV ads. Viewers of ad-supported streaming were also much more likely to say that the ad load for that content was “reasonable,” and that they enjoyed the show they watched. Ultimately, as Hub founder and principal Jon Giegengack remarked in the report, “The ad experience on Connected TVs is much better than regular TV. Most important, there’s no compromise on content: tiered subscriptions make the same content available with or without ads. As viewers feel the bite of inflation, many will consider paying less (or even nothing) for good content a no-brainer.”
How Netflix’s Entry Into Advertising Will Shape the Future of TV Marketing
Netflix’s imminent dive into the world of advertising will initiate the video advertising industry’s biggest event since the rise of TikTok.
Inflation is Driving Streaming Cancellations—But Content Is the Cure
Like other goods and services, streaming services are not immune to inflation. As the cost of living continues to climb, consumers are cutting back on discretionary spending—and that’s putting some streaming services in the crosshairs.
The New Golden Age of Television Advertising
Today, the industry is in the middle of a transformation, but with an important twist: It’s digital. Connected TV is a golden opportunity for brands to create highly innovative content in response to cultural moments and effectively measure results.
Why not receive our CTV advertising report, right to your inbox? Just enter your email below and you’ll never be out of the CTV / OTT advertising loop again.
Subscribe to the report Apple, Amazon, NBC and more use to get their CTV news.