CTV is in a state of war. Is subscription-based broadcasting still the mainstream? Is there room for growth for ad-based
Posted: Wed Dec 11, 2024 5:48 am
"AVOD as a low-cost option"
While SVOD will likely continue to lead the CTV market, AVOD is also expected to grow steadily (user numbers grew 6 points in the one-year period from January 2020 to January 2021). This brings up some interesting user needs.
According to the PwC US survey mentioned above, the average number of streaming services used by U.S. CTV users in 2020 was as high as eight. Since multiple apps are often installed on netherlands phone number resource a single CTV device, the hurdle of using multiple services may not be as high as one might think, but eight is still a small number.
The reason is simply the "breadth of content ." Content providers supply content to multiple streaming services, but of course there is no streaming service that can watch all content. Having unique content is one of the important strategies in the CTV Warring States era. As a result, users use multiple services in search of specific content, while using their favorite services in particular. However, there are limitations to using multiple services due to costs.
In light of this, streaming service providers are beginning to offer the option of "AVOD as a cheaper version" in order to attract more users . Paramount Plus has begun offering an ad-supported plan for $4.99 per month in addition to an ad-free plan for $9.99 per month. HBO Max also started with an ad-free plan, but announced in June that it would launch an ad-supported plan .
In this way, by offering the option of "a slightly cheaper plan with ads," it is possible to meet the need to "expand the range of content while keeping overall costs as low as possible ." CTV services continue to diversify and fragment, and although it is unclear whether the number will decrease through consolidation or the number of types will increase in the future, it looks like the trend of "using multiple streaming services" will continue for some time.
According to the report below, released last month, three out of five of the 3,000 viewers surveyed said they would like to subscribe to more ad-supported services , indicating that AVOD continues to have high expectations.
While SVOD will likely continue to lead the CTV market, AVOD is also expected to grow steadily (user numbers grew 6 points in the one-year period from January 2020 to January 2021). This brings up some interesting user needs.
According to the PwC US survey mentioned above, the average number of streaming services used by U.S. CTV users in 2020 was as high as eight. Since multiple apps are often installed on netherlands phone number resource a single CTV device, the hurdle of using multiple services may not be as high as one might think, but eight is still a small number.
The reason is simply the "breadth of content ." Content providers supply content to multiple streaming services, but of course there is no streaming service that can watch all content. Having unique content is one of the important strategies in the CTV Warring States era. As a result, users use multiple services in search of specific content, while using their favorite services in particular. However, there are limitations to using multiple services due to costs.
In light of this, streaming service providers are beginning to offer the option of "AVOD as a cheaper version" in order to attract more users . Paramount Plus has begun offering an ad-supported plan for $4.99 per month in addition to an ad-free plan for $9.99 per month. HBO Max also started with an ad-free plan, but announced in June that it would launch an ad-supported plan .
In this way, by offering the option of "a slightly cheaper plan with ads," it is possible to meet the need to "expand the range of content while keeping overall costs as low as possible ." CTV services continue to diversify and fragment, and although it is unclear whether the number will decrease through consolidation or the number of types will increase in the future, it looks like the trend of "using multiple streaming services" will continue for some time.
According to the report below, released last month, three out of five of the 3,000 viewers surveyed said they would like to subscribe to more ad-supported services , indicating that AVOD continues to have high expectations.