Some 69% of U.S. television content viewers use free streaming services at least monthly.
That’s up from 42% in 2019, newly released data from Horowitz Research finds.
Meanwhile, subscription fatigue appears to be taking hold.
The rapid growth in usage of free streaming services is driven by the number and variety of free, ad-supported streaming TV (FAST) services, which offer linear content in addition to their on-demand libraries.
And, as shown in Horowitz’s latest State of Media, Entertainment & Tech: Subscriptions 2023 study, the free services consumers in the survey are using most are NBCUniversal’s Peacock, FOX’s Tubi, Paramount Global’s Pluto, and Alphabet-owned YouTube.
How does this “FAST” growth compare to subscription video-on-demand (SVOD) trends? With self-reported total average spending on these services over $50/month, data from the Horowitz study indicate that there is a growing appetite for managed services to control costs.
In 2019, over half of cord-cutters felt they were saving “a really good amount.” In this current study, that number dropped to 33%.
That’s why bundles are increasingly important, as 30% of those surveyed indicate they pay for at least one of their streaming services in combination with another service they have. For instance, legacy Sprint customers are able to receive Hulu as part of their monthly mobile phone services bill. Verizon customers have access to Paramount+.
A CORD-CUTTING PAUSE?
The Horowitz study also looked at trends regarding MVPD services, and after years of decline in MVPD subscriptions, penetration of traditional cable/satellite services seems to be remaining steady.
Consistent with last year, 52% of TV content viewers subscribe to MVPD services and customer satisfaction with their service overall among those subscribers is high, at 80%.
Satisfaction numbers have increased slightly over the past few years as less happy customers abandon MVPDs for streamed options, while MVPD loyalists, who derive a lot of value out of the service, remain subscribed. Notably, 32% of cord-cutters say that if the cost of all their streaming services continues to increase, they might consider going back to cable.
32% of cord-cutters say that if the cost of all their streaming services continues to increase, they might consider going back to cable.
“The data from this year’s study points to some important opportunities for media companies and consumers,” notes Adriana Waterston, Chief Revenue Officer and Insights & Strategy Lead for Horowitz Research. “The adoption of AVOD/FAST services — and the concomitant increase in streaming ad revenue we can expect to see — will help offset revenue loss on the linear side, which is critical as programming costs continue to skyrocket.
The survey, among 2,200 adults, was published in March 2023. Data have been weighted to ensure results are representative of the overall TV universe. For more information about the State of Media, Entertainment & Tech: Subscriptions 2023 report, visit: https://www.horowitzresearch.
