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November 13, 2022
This revolution WILL be televised. A new report from the industry research firm Parks Associates shows that more Americans than ever are watching ad-supported TV over the internet. The numbers from Parks show that 37 million U.S. viewers now watch an ad-supported video-on-demand (AVOD) or free ad-supported TV (FAST) service.
That represents a nearly 7% increase in the number of households using such services since 2019. Parks analyst Alan Bullock attributes the increase to the uncertain economic climate, which is causing consumers to evaluate discretionary spending and switch from legacy pay-tv or subscription video-on-demand (SVOD) services as a means of cutting costs.
Numbers provided by the streaming services themselves back up Parks’ findings. Tubi grew to a total of 1.3 billion hours streamed in the third quarter of 2022, further demonstrating the power of FAST services. Peacock grew by 2 million paying customers to 15 million in the same quarter, though its parent company NBCUniversal does not release how many users are on its AVOD tier and how many utilize its SVOD plan.
From the article, "Report: 37 Million U.S. Viewers Use Ad-Supported Streaming; Nearly 25% Have Clicked to Buy a Product" by David Satin.
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