Recommended reading

Parks: U.S. Ad-Supported SVOD Subscriptions to Top 278M by 2029

By published

82% of viewers see streaming ads through a combination of free streaming services, ad-based tiers of subscription streaming services, and vMVPD services that feature ads as part of their live/linear bundles of channels.

TV remote
(Image credit: Getty Images)

DALLAS—Ad-supported subscription-based streaming services will increase in popularity over the next four years, reaching 278 million viewers by 2029 according to Parks Associates.

With Nielsen’s estimates of 315 million TV viewers nationwide (representing almost 97% of U.S. households), this means more than 88% of TV viewers will be watching ad-supported SVOD.

(Image credit: Parks Associates)

The rise in adoption of ad-based services creates a foundation for additional revenues as well as opportunities to engage viewers in new ways through more interactive and personalized experiences, Parks says. Shoppable features and direct transactional opportunities can turn social and video content into a more direct sales channel, blurring the lines between entertainment, content consumption, and e-commerce.

"Industry players can take productive steps today to advance the interactive TV experience for viewers and advertisers by connecting workflows, making effective use of available data, and optimizing user experience elements for interactivity," said Jennifer Kent, Vice President, Research, Parks Associates. "Success involves building sustainable, scalable solutions for the long term rather than quick, band-aid solutions that address only immediate challenges."

A new white paper Interactive & Shoppable TV: Next Wave of CTV Revenues, released in partnership with Adeia, focuses on the service provider opportunity to advance the consumer experience and build on expectations of interactivity and specifically engage in commerce through the TV. It highlights consumer interest, use, and preferences for interactive features across TV and mobile viewing devices and platforms, including shoppable advertisements.

Research highlights include high demand for commerce and advertising in CTV:

  • 52% of US internet households are likely or very likely to perform at least one commercial activity through a CTV platform.
  • 82% see streaming ads through a combination of free streaming services, ad-based tiers of subscription streaming services, and vMVPD services that feature ads as part of their live/linear bundles of channels.
  • 59% subscribe to an ad-based tier of an SVOD service, like Netflix, Disney+, or Peacock.
  • 47% watch free ad-based streaming services, like Tubi, Pluto, and The Roku Channel.
  • 22% watch streaming pay-TV services, vMVPDs, like YouTube TV, Hulu + Live TV, or Philo.
CATEGORIES
Tom Butts
Tom Butts

Tom has covered the broadcast technology market for the past 25 years, including three years handling member communications for the National Association of Broadcasters followed by a year as editor of Video Technology News and DTV Business executive newsletters for Phillips Publishing. In 1999 he launched digitalbroadcasting.com for internet B2B portal Verticalnet. He is also a charter member of the CTA's Academy of Digital TV Pioneers. Since 2001, he has been editor-in-chief of TV Tech (www.tvtech.com), the leading source of news and information on broadcast and related media technology and is a frequent contributor and moderator to the brand’s Tech Leadership events.