Most American media consumers are now dedicated streamers, but the audience’s habits and expectations are changing as subscription service prices rise and free or low-cost ad-supported services become more widely available, according to a whitepaper published today by FoxFOXA -1.2% Corporation’s ad-supported streaming service, Tubi.
The report, created in collaboration with The Harris Poll, polled 2503 adults who stream at least once a week. Among the main findings:
Americans love to stream! 56% of viewers questioned watched 1-3 hours of content in one sitting, with 40% bingeing for more than three hours.
Streamers favor a range of services. The poll respondents believe that they use roughly four streaming services, with heavy users average closer to five.
Consumers spend more on video viewing than on gasoline. Americans spend an average of $120 per month on streaming services and TV packages, versus an average of $112 on gas. More than half of Generation Z and Millennials feel they are “overspending” on streaming, and 71% have cancelled memberships due to price increases or tiered membership plans.
The majority of viewers are fine with commercials if they cut prices. When asked if they’d rather watch advertising if it meant saving money on one more coffee each month, 58% replied yes. 62% of respondents chose free, ad-supported streaming to premium subscriptions.
The survey also addressed content preferences, particularly among younger consumers. According to comparable assessments of young readers’ habits, younger streamers place a high priority on diversity and representation in the information they consume (74% according to the Tubi poll). Almost three-quarters prefer original concepts over remakes, and 71% want to see more television and movies from independent artists or small production firms. However, most younger viewers, like nearly all streamers questioned (96%), enjoy nostalgia and frequently return to earlier episodes because “the style and quality is good.”
Younger viewers are increasingly watching live sports or sports-related programs via streaming platforms rather than broadcast or cable. According to the survey, 42% of GenZ sports enthusiasts watch three or more hours of live sports streaming every week, while only 24% watch cable or satellite TV.
The survey is plainly beneficial to its sponsor, Tubi, one of the fastest-growing ad-supported streaming services in the United States. However, it also provides a clear picture of the prospects for others in the ad-supported video on demand (AVOD) field, as well as advertisers looking for access to the mass media audience with the added targeting and data-driven capabilities of over-the-top (OTT) services.
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Finally, the report confirms that the streaming era, which has been dominated by ad-free subscription-based platforms and big budget original content, is entering a new phase in which those platforms must not only compete with one another in an environment of rising costs and tighter budgets, but also protect share from competitors offering a good deal for cash-strapped consumers and a “good-enough” mix of real-time, vintage, and niche-oriented programming.
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