Netflix Inc (NASDAQ: NFLX) and Walt Disney Co (NYSE: DIS) are the leaders in paid streaming video, but a new report from global consumer research platform Piplsay suggests ad-supported video viewership has been on the rise.
Streaming Statistics: Earlier this year, Variety reported Americans subscribe to an average of four streaming services and pay an average of $47 per month for those subscriptions. To compete with the top paid service providers, competitors are increasingly relying on ads to help reduce or eliminate subscription fees.
The Piplsay survey found 63% of Americans are now subscribed to at least one ad-supported streaming service, and 49% of those surveyed said they are satisfied with the content those services offer.
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In fact, 60% of respondents said they have switched from an ad-free streaming service to an ad-supported one in the past year, with 28% of respondents indicating they have switched completely from ad-free streaming to ad-supported streaming.
Top Ad-Supported Services: Among free ad-supported streaming services, 23% of Americans said the Comcast Corporation (NASDAQ: CMCSA) Peacock service is their favorite. Roku Inc’s (NASDAQ: ROKU) Roku Channel was the second favorite at 17%, followed by ViacomCBS (NASDAQ: VIAC) service Pluto TV at 12%.
The $5.99-per-month Hulu ad-supported plan by Disney was the preferred paid ad-supported subscription service, with 34% of respondents naming it their favorite.
Benzinga’s Take: The streaming landscape has come a long way in recent years, but more competition means services will have to be more flexible in pricing and business models.
As newer, smaller competitors take on Netflix for market share, flexibility on price and advertising will likely play an important role in winning over subscribers.
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