AVOD Interest Up Nearly 50% in Recent Years, Verizon Study Shows

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NEW YORK—A rising tide lifts all boats, as the expression goes, and the rise of streaming has not only been a boon for the likes of Netflix, Hulu, Disney+ and more, but also for ad-supported services (AVOD). AVODs have grown in popularity among consumers, according to a recent study by Verizon Media and Publicis.

In its “Capitalizing on the CTV Opportunity” report, Verizon and Publicis recognize that AVOD platforms are poised for growth amid all the subscriptions and option fatigue. The report notes that consumers have on average five streaming services, with 45% saying they are using too many services for content and 48% worrying about how much they’re spending for the services.

As a result, AVOD has gained in popularity among consumers, carving a niche in the streaming market with either cheaper versions of SVODs that still offer much of the same premium content or free versions that provide users with low-financial risk to use.

Seven out of 10 respondents said paid AVOD services were worth the prices, describing them as “affordable,” “a good value” and a “fair price.” Three in five also said that they would prefer if more streaming services offered cheaper, ad-supported subscription tiers.

Just under half (47%) of respondents said they are more interested in AVOD services than they were just a few years ago and would be willing to try it—83% said they’d try an AVOD version of their favorite service, while 82% would consider an AVOD version to save money.

That doesn’t mean that respondents would just accept whatever ads came their way. About a quarter (23%) of AVOD subscribers switched to a paid, ad-free version because of a bad ad experience. As for what can make a bad ad experience, respondents said overly long commercial breaks (60%), too many commercial breaks (60%) and repetitive ads (58%).

More information on Verizon Media and Publicis’ report is available online (opens in new tab)