While SVOD is making big news, free and ad-supported streaming remains a force, according to a new survey.
Nearly half of respondents in a survey of more than 2,000 U.S. adults said they were tuning into local (i.e. NewsOn, CBSLocal) or free, ad-supported (i.e. Pluto TV, XUMO and Roku) streaming services, at 47 percent and 46 percent, respectively.
The survey was conducted online by The Harris Poll on behalf of ZypMedia, a software platform that manages digital advertising offerings for media and broadcast companies.
When it comes to consumers that watch free or ad-supported streaming TV, 62% of consumers that have a preference between watching local or national commercials, prefered local ads. That number was slightly more, at 68%, for consumers that watch local streaming services. This was particularly true for millennials (defined as ages 18-34) who said they watch free, or ad-supported over-the-top (OTT) streaming services; they prefered local ads more than consumers ages 55-plus.
“While SVODs like Netflix and HULU garner much of the world’s attention, free, ad-supported and local streaming services are becoming powerful platforms for brands to make an impact in local markets around the country,” said Aman Sareen, co-founder and CEO, ZypMedia, in a statement. “Millennials are particularly responsive to local advertising messages, making ad-supported OTT a valuable channel.”
In the survey, 30% were cord cutters who watch all content via streaming services, while even more (37%) were “cord shavers” and watch both. More than half (52%) of cord cutters and 47% of cord shavers indicated that they don’t mind watching ads.
In addition, more than half (51%) of consumers surveyed that ever watch free, ad-supported streaming services agrees that the commercials that they see on streaming services are more relevant than the commercials they see on cable TV.