Most Consumers Prefer AVOD To Reduce Cost of Streaming

Future Today
(Image credit: Future Today)

More than half of U.S. consumers said they see ad supported video services as a good way to reduce or eliminate subscription fees, according to a new survey from Future Today.

The study found that 35.5% of consumers plan to decrease the number of services they pay to subscribe to. But 41% of those who took a free-trial offer in the past 12 months said they became subscribers when the trial ended.

The results come as streaming services slowly but surely racked up the price of subscriptions. On Tuesday, The Walt Disney Co.’s Hulu said it was rising its rate by $1 a month.

Consumers said the commercials they see on streaming services are twice as likely to be relevant than the ones they see on cable and broadcast TV.

The survey also found that 68% of consumers said they prefer to watch shows on demand, while just 12.5% prefer linear channels.

Consumer viewing preferences continue to evolve. Streaming has become the de facto source for watching TV shows and movies, but not all services, platforms and models will thrive in this shifting media landscape,” said Vikrant Mathur, CEO and co-founder of Future Today, who runs ad-supported streaming services including FilmRise, Fawesome and HappyKids.

“Despite some pundits’ expectations, we’re seeing AVOD adoption flourish, and expect this trend will continue to grow for years to come. Our research solidifies that with the right viewing experience, the ad-supported streaming model is ideal for content owners, brands and, most importantly, audiences,” Mathur said.

The study surveyed more than 1,000 consumers between June 15 and June 30.

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.