When it comes to streaming, viewers want… ads? (Maybe?)
Okay, maybe that’s going too far. But according to a new TiVo report, based on a survey of 4,500 adults in the U.S. and Canada, more than half (54%) of consumers now use ad-supported subscription tiers, while adoption of AVOD and FAST services reached 70%, up five percentage points year over year. AVOD and FAST platforms now account for 13% of total viewing time. (Which initially feels low, but I guess it makes sense.)
The report also found that FAST audiences are becoming more engaged. The average FAST viewer now watches 7.5 channels, up more than two channels from a year ago, with Pluto TV, Tubi, Roku Channel, and Amazon Prime Video remaining the leading destinations.
Why This Matters:
The streaming market continues to shift from subscriber-only models to lower-cost, ad-supported alternatives and people seem to be on board.
SVOD services remain popular, of course, but consumers are increasingly looking for ways to manage their entertainment spending. In an environment where the pressure from higher costs across essentials like groceries, housing, and fuel is a challenge, paying for multiple premium streaming subscriptions becomes harder to justify. Ad tiers, AVOD platforms, and FAST services offer a lower-cost way to access content while helping consumers cut down on expenses. (It’s the economy, CTV ad buyer.)
The trend is also good news for advertisers. As more viewing migrates into ad-supported environments, marketers get access to larger audiences and more (hopefully) premium inventory. The fact that AVOD and FAST now represent 13% of total viewing time suggests these channels are evolving from supplemental viewing into a more meaningful part of the streaming diet.
Experts React:
But remember: as more dollars shift to CTV and streaming, transparency, accountability, and measurement will become increasingly essential.
Fortunately, there is progress on that front, according to DoubleVerify’s GM of CTV, Todd Randak. Randak says CTV app transparency—”a foundational prerequisite for everything from brand suitability to campaign performance measurement”—has improved year over year, reflecting “a market that’s responding to real demand from advertisers and meaningful commitment from streaming TV platforms.”
Our Take:
The most interesting data point here may be that FAST users are watching more channels.
Consumers are building broader viewing habits within the FAST ecosystem, spending more time exploring content and becoming increasingly comfortable with ad-supported streaming. That matters because it points to a future where the distinction between SVOD and AVOD/FAST becomes less important. As subscription fatigue grows, the winners may ultimately be the platforms that deliver compelling content at a price point that feels right—and increasingly, that price may be free.
AdTechRadar is owned by Chris Harihar, an EVP at Mod Op. DoubleVerify is a Mod Op client.
