Streaming Revenue Will Overtake Pay TV in Q3 of 2024
by Frankie Karrer
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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 free 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.”
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