TiVo: AVOD Now Generates 32% Market Share, Up From 26% in 2021
October 27, 2022
AVOD services, including free ad-supported streaming TV (FAST), now accounts for 32% of the overall share of video services used by consumers in 2022, compared with 26% in the fourth quarter of 2021, according to new data from TiVo. The average household now uses three ad-based VOD services.
With the growth of AVOD use, the overall streaming video market (including SVOD and online TV) is approaching double-digit market penetration for the first time. TiVo says the average home now uses 9.86 video services, compared with 8.8 services a year ago.
Despite economic concerns about inflation, TiVo found that in its survey of 4,503 adults 18 and older living in the U.S. and Canada during the second quarter of 2022 (ended June 30), 70% said their video entertainment spending is a moderate to high priority. Despite inflation and financial pressures, only 25% of respondents said they reduced their entertainment spending. About 30% said they had purchased a smart TV between Q4 2021 and Q2 2022.
“While video entertainment remains a priority for the vast majority of consumers, FAST services allow consumers to stretch their entertainment dollar,” Michael Goodman, director, TV & Media Strategies, Strategy Analytics, TiVo, said in a statement.
Additional survey intel found that 80% of respondents said they wish their paid streaming service offered an ad-supported free option, but a quarter (24.3%) of AVOD users admitted to only spending three months watching a new AVOD service until moving onto a new option.
Moreover, pay-TV subscribers admitted to hopping between AVOD services at more than twice the rate of broadband-only users.
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