TiVo: Consumers Cutting Paid Streaming Services, While Upping Free Options
April 2, 2024
The total average number of video services used by U.S. consumers topped 11.1 in the fourth quarter, ended Dec. 31, 2023. That was down about 3.5% from a peak of 11.5 services used in the previous-year period, according to new TiVo survey data presented April 2 during a webinar.
The average number of paid SVOD services topped 7.1 in Q4, which was down 6.5% from a peak of 7.6 services in the prior year period. At the same time, the average number of free ad-supported streaming video services increased slightly to four platforms, from 3.9 platforms a year ago.
The use of free ad-supported video options has exploded, increasing 65% from 1.4 average services used in the fourth quarter of 2020 during the pandemic. Notably, 67.8% of respondents said they used at least one AVOD/FAST service in Q4, up from 63.5% a year ago, and 50.8% four years ago.
Speaking on the webinar, Fariba Zamaniyan, VP of advanced media and advertising at TiVo, said he believes the growth in ownership of smart TVs, many of which now operate proprietary and third-party ad-supported streaming platforms, has contributed to the growth of AVOD/FAST use.
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“The accessibility and awareness is growing because we are adopting the medium,” Zamaniyan said. “It’s not just a single [smart] TV set; it’s multiple TV sets that are smart in homes, which is bringing this technology right to consumers.”
TiVo found that 24.3% of consumers canceled a streaming service in the past six months, while 28.6% signed up to a new service, underscoring the draw of lower-cost, ad-supported subscriptions platforms, and free ad-supported streaming television (FAST).
More than 21% of respondents cited price of service for canceling, while another 20% of consumers said they believed they have too many video services.
“Respondents are now canceling service almost as often as they are adding new ones,” read the report.
Scott Maddox, VP of global content strategy and business at TiVo, attributed some of the paid streaming service use decline to consolidation of platforms, including HBO Max and Discovery+ merging to become Max, as well as the upgrade in content quality on AVOD and FAST platforms.
“I see consumers really focusing on their favorite [streaming] services,” Maddox said, adding that the quality in content spending is “driving up” viewership.
Overall, TiVo found the percentage of time spent by respondents consuming pay-TV dropped to 27.9%, from 32.1% a year ago. SVOD use dipped slightly to 30% from 30.2%, while the time percentage spent on AVOD/FAST platforms increased to 10.3% from 8.7%. Social media use remained strong at 17.1%, up from 14.7% in the prior-year period.
Nearly 60% of respondents consume video streaming on the household television, including 39.2% during primetime hours. That compared with 15.9% of time spent streaming on a smartphone, 11.4% on a tablet and 13.1% on a PC. Another 11.6% of viewing occurs during the morning hours.