Video Streaming & Consumer Trends

Viewer Streaming Adoption

• Across 22 major providers, there are more than 1,500 FAST channels providing content to over 190 million users. (tubi + FOX, 2023)
• The average household uses an average total of 12.5 entertainment sources including 3.1 big brand SVOD subscriptions, 1.3 streaming music sources and 1.1 free streaming TV services. (Hub Entertainment Research, Battle Royale Study, Wave 2 – Oct. 2022)

• The average number of TV entertainment content sources in the home has dropped to 6.4 sources this year from 7.4 sources in 2022. (Hub Entertainment Research, 2023)
• 72% ​of consumers feel there are too many subscriptions (Hub Entertainment Research: Aggregation Study)

• OTT subscription services are present in 89% of US homes with broadband, and 44% of those households have people in them who watch pay TV with another 63% having smart TV sets. (Park Associates, 2022)
• Six out of seven (86%) U.S. households have at least one streaming video service from fifteen top subscription Video On-Demand and direct-to-consumer (DTC) services. (Leichtman Research Group, 2023).
• Half (50%) of households have four or more DTC streaming video services. (Leichtman Research Group, 2023)
• The average consumer subscribes to 2.8 streaming TV services and 10% pay for more than five streaming services simultaneously. (Forbes Home, 2023)
• Average DTC Streaming Services by Age (Leichtman Research Group, 2023)
  • A18-44: 4.8
  • A45-54: 4.0
  • A55+: 2.5
• The average TV content viewer uses about 7 services a month. (Horowitz Research)
• Over half of all AVOD streaming time is spent on four services –  – Peacock, Roku, Pluto and Tubi. (Source: Magid’s Video Entertainment Pulse Study)
• Netflix was the most popular streaming service with 52% subscribing followed by Amazon Prime (10%), HBO Max (7%), Apple TV (7%) and YouTube TV (7%). (Forbes Home, 2023)
• Among younger audiences under 35 years, Hulu is the most popular streaming service with 58% of mobile downloaders. (Pathmatics, 2022)

Streaming Growth and Churn

• There are more than 300 OTT providers in the USA alone. (LemonLight)
• There were 226 million CTV streamers in 2022 which is expected to grow to 242 million by 2026. (Source: eMarketer, 2022)
• U.S. to add 104 million SVOD Subs by 2027 (Digital TV Research)

• The share of TV content viewers who rely solely on streaming continued its upward trajectory, with nearly 4 in 10 (37%) TV content viewers paying for an SVOD service, an increase from 30% in 2021. (Horowitz Research)

• After steep increases in consumption in 2021 and 2022, usage of the FAST alternatives remains strong in 2023. (Hub Entertainment Research, 2023)

• Streaming subscriptions are growing with those who only stream growing from 14% in 2020 to 37% in 2022. (Horowitz, 2022)

• However, the vMPVD market is also highly volatile with two-fifths (40%) of vMPVD subscribers subscribing for less than 6 months and 70% less than one year. In addition, 42% are very likely/likely to cancel in less than one year. (Horowitz Research)

• For the first time, the “Big 5” SVOD services (Netflix, Prime Video, Hulu, Disney+ and Max) experienced a decline in subscribers since last year with fewer households opting to stack three or more. (Hub Entertainment Research, 2023) 

• 35% of respondents say they would cancel Netflix over higher prices or password sharing crackdown translating into a loss of approximately 80 million subscribers. (Forbes Home, 2023)
• About 25% respondents say they would cancel any streaming service subscription if they cracked down on password sharing or over higher prices. (Forbes Home, 2023)

Aggregating Streaming Networks

• Integrating SVOD and FAST streaming subscriptions into customer’s pay-TV services have the opportunity to increase value and renewal rates, with customers most interested in features that simplify their viewing experience. (CTAM/Hub Entertainment Research: Aggregation Study)

• Integrated SVOD Services Create Pay-TV Subscription Value: MSO subscribers with at least one SVOD service integrated into their TV service are 50% more likely to give high value ratings and report being more likely to still have pay-TV subscription in a year (69%). (Hub Entertainment Research Aggregation Study, 2023)

• Viewers Favor Choice and Quality in TV but Complexity Makes Choices Harder: Although consumers are attracted to the variety of choices and quality in TV options, over 51% reported “too many shows” making overall TV content choices harder to make. (Hub Entertainment Research Aggregation Study, 2023)

Streaming Behavior & Spend

• Three out of four (75%) of SVOD users are satisfied with their TV services. (MarketCast)
• Streamers used 15% more services and watched 27% more total hours of entertainment in 2022. (Comscore, State of Streaming)
• The big screen (CTV – Connected TV) is now the primary way audiences consume streaming content. (Source: Comscore, State of Streaming)
• Almost two-thirds (65%) of TV HHs stream on a smart TV at least monthly. (Source: Hub Entertainment Research, Connected Home Study)
• Viewing on mobile devices is mostly at home, NOT on the go, as three-quarters of viewing on mobile devices occurs when viewers are at home. (Hub Entertainment Research, Video Redefined Study – Dec. 2022)

• 81% of SVOD streamers pick services based on cost with 40% of AVOD streamers citing low fees as a key benefit to AVOD. (Variety Intelligence Report and MRI, 2022)
• Nearly half (47%) of respondents pay for streaming services they don’t use. (Forbes Home, 2023)
• Only a small fraction (4%) ever review how much they’re spending on streaming services and half say they forgot to cancel a service after the offer of a free limited time subscription expired. (Forbes Home, 2023)
• Nearly 1 in 3 streamers plan to cut back spending on subscription services. (Magid, 2022)
• A quarter of U.S. adults wait for streaming originals’ finale before starting, citing the following as reasons: (YouGov. 2023)
  • A preference for binge-watching shows: 48%
  • Fears over the show’s potential cancellation with an unresolved ending: 27%
  • They do not want to wait for the next season after a cliffhanger: 24%
• 57% of subscribers signed up with a service to watch just one show, and more than half considered the opportunity to binge watch one show worth the price. (Forbes Home, 2023)
• Over one-quarter (27%) of streaming video services are shared and 12% of them are fully paid for by someone outside the household. (Leichtman Research Group, 2023)
• The cost of overall OTT ($75 avg monthly cost) is approaching the cost of the MVPD video ($91). (Horowitz Research)

• Streaming audiences expect superior streaming quality with 22% of younger streamers saying they’ll abandon a show or movie if playback or buffering issues occur, stopping more users from streaming than ads (17%). (tubi+FOX, 2023)
• Fewer cord-cutters feel they are saving “a really good amount of money” (39%). (Horowitz Research)

Streaming Among Latinx Audiences

• The majority (83%) of Latinx TV content viewers use SVOD services and almost six in ten use AVOD and media company DTC services. (Horowitz Research FOCUS Latinx: State of Consumer Engagement 2022)

• Latinx are much more likely to stream content (85%) compared to the total market (76%) seeking Spanish dominant (87%), bilingual (86%) and English oriented (84%) programming. (Horowitz Research FOCUS Latinx: State of Consumer Engagement 2022)
• Latinx TV content viewers are more likely than the general market to use several SVOD services including Netflix, Disney+, HBO Max and Paramount+. (Horowitz Research FOCUS Latinx: State of Consumer Engagement 2022

What is OTT?

“Over the top” (OTT) services refer to any type of video or streaming media that provides a viewer access to movies or TV shows by sending the media directly through the internet 

^{*Collins English Dictionary}

OTT Streaming Types and Examples

• SVOD = “subscription video-on-demand” in which a viewer sets up a monthly or yearly streaming subscription agreement for a flat monthly fee
• DTC = “direct-to-consumer” streaming service is when a network or streaming channel sells their service directly to the consumer bypassing retailers and wholesalers
• TVOD = “transactional video-on-demand”, which earn revenue via singular transactions “pay-per-view”
• AVOD = “advertising video-on-demand” services, which earn revenue from ads placed in streaming services
• FAST = “free ad-supported streaming TV services” are essentially live streaming services without the subscription and typically are an extension of traditional linear TV channels

^{*Please note that several streaming services can provide a hybrid model including subscription and advertising in their direct-to-consumer platforms.}