Nearly half of U.S. internet households are consumers of free ad-supported streaming television (FAST) channels, new data released by Parks Associates show.
The finding comes ahead of the eighth annual Future of Video: Business of Streaming conference in Marina del Rey, Calif., scheduled for November 18-20 at the Marina Beach Marriott.
Specifically, some 89% of U.S. internet households subscribe to at least one streaming service, while 45% of these households watch free ad-based services — namely the fast-growing “FAST” channels.
Additionally, Parks reports that 59% of subscriptions across the eight leading subscription ad-based video on demand (SVOD) services are subscriptions to the basic tier with ads.
Naturally, this sends the message that streamers are open to advertising, only fueling the barrage of press releases and digital and streaming advertising-focused studies designed to drive more dollars to an industry that, while growing, remains behind linear television with respect to reach and metric accuracy.
“The real battle is shifting to the distribution, discovery, and monetization of video,” said Elizabeth Parks, President and Chief Marketing Officer at Parks Associates. “Traditional and digital distribution are converging, with ISPs and connected TV platforms emerging as gatekeepers. Consumers don’t see categories anymore — they just want frictionless access. While the early years of streaming were focused on subscriber growth, advertising is becoming the primary growth engine for the video industry.”
