Half of All Internet Users Will Use an AVOD Service by 2024

3 Min Read

Americans are continuing to cut the cord on their cable subscriptions at a rate of 4-5% per year. In fact, in two years, less than half of US TV watchers are expected to have cable or satellite TV. Most of the viewers leaving cable are switching to ad-supported video on demand services (AVOD), whose audience is growing twice as fast as that of subscription video on demand (SVOD). And advertisers are taking notice—by 2026, AVOD revenues are expected to be three times the amount of 2021, reaching $31.4 billion. 

This migration of viewers will mean that half of all internet users will be reachable through an AVOD service by 2024, according to eMarketer. Part of the reason for the preference for free ad-supported apps is the growing number of streaming services available for consumers. Tubi found that once a household reaches a saturation point of three streaming services, any additional content watched is likely to be through an AVOD service due to the lower (or nonexistent) price point. The report also predicts that as this audience grows, free-streaming audiences will expand to include older and higher-income audiences. Ultimately, as more and more consumers turn to AVOD to watch streaming content, advertisers should be looking to get their ads on Connected TV to reach this growing audience.

Connected TV in the News

NBCU Will Stream Several MSNBC Shows on Peacock
Adweek
For the first time, Peacock Premium subscribers will be able to stream several of the cable network’s shows the day after they air on linear, without a cable subscription.

What the New Disney+ Ad Tier Means for Disney, Advertisers, and Viewers
MNTN
Disney+ is rolling out an ad-supported subscription tier. Part of the reasoning for this move is cultivating a scalable and accessible self-serve advertising platform that aims to expand CTV usage into a larger, more diverse group of advertisers.

Streaming Video Ads Have Key Role in Midterm Elections
Beet.TV
Campaigns are grappling with a seismic shift in television viewing habits during the pandemic, which kept many people at home during a time when major media companies either expanded or launched streaming video services.

Get the Latest Connected TV News, Right to Your Inbox

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.

Sign Up for the Connected TV Report

Subscribe to the report Apple, Amazon, NBC and more use to get their CTV news.