Quite a lot, according to new data from Parks Associates.
The average streaming household, which subscribes to 5.6 platforms, according to the research firm, could save $366 a year on average by switching to ad-based tiers.
“The move to ad-based services provides more options for consumers, especially as they are seeking a balance between costs and the desire for multiple content options,” Jennifer Kent, Parks Associates vice president of research, said in a statement. “Not everyone’s favorite streaming service offers a cheaper ad-based service tier yet, and many subscribers will choose a mix of ad-based and premium options, depending on household preferences.”
Earlier this month, during the firm’s presentation of its State of the Market: Streaming Video Services report, Parks Associates said in the past month, 31% of U.S. households reported watching an ad-supported video on demand or a free ad-supported streaming service – a 13% increase from 2018. In addition, 41 million U.S. households are expected to watch ad-based over-the-top (OTT) video services like Tubi, Freevee, and Pluto TV. Last December, the firm said streaming subscriptions has declined 25% from $90 in 2021 to $73 in 2023, as viewers migrated to free, ad-supported services to save money.
Kent’s prediction that subscribers will choose a mix of ad-based and premium options further supports the firm’s previous notion that platform consolidation could be a potential solution for companies, viewers, and advertisers.
From the article, "You Can Save Over $350 a Year on Streaming Services If You Don’t Mind Commercials" by Shelby Brown
About 20% of US broadband homes had cancelled at least one OTT service in the last 12 months at the end of 2015, according to data from Parks Associates. Netflix has the lowest churn among US OTT s...
Data and user privacy remain top reasons consumers are wary of wearable devices. For instance, a recent Parks Associates report notes that about 35 percent of consumers who responded to a survey say t...
Earlier this year, a report from digital health analyst Parks Associates found that 27 percent of people with a chronic condition want a mobile health device that tracks their health, but a significan...
With more people looking for alternatives, the market for streaming media players also continues to grow. A recent report from Parks Associates says 31 percent of U.S. broadband households own one of...
