Study: US viewers cutting down on SVoDs
April 12, 2023
Findings from LG Ad Solutions’ latest streaming report show that although viewers are streaming a greater amount of free, ad-supported TV, nearly half of US households aren’t sure what they want to watch when they turn the TV on, given the amount of content now available on streaming. And even if they know what they want to watch, 40 per cent are confused on where to find that content.
“Consumers take almost six minutes on average to select a piece of content to watch after turning on the TV,” notes Tony Marlow, CMO of LG Ad Solutions. “This presents a great opportunity for streamers to leverage Smart TV homepages for content discovery. Our data indicates that 39 per cent of viewers have used recommendations from their TV’s homepage when they’re looking for something new to watch–and we anticipate that number to increase as Smart TV adoption continues to climb. The home screen is the new centre of the CTV experience where consumers can search for specific content, and find recommendations when they aren’t sure what they want to watch.”
The study, a follow up to LG Ad Solutions’ first The Big Shift report in 2022, surveyed more than 750 US consumers in March 2023 to determine consumer perceptions and behaviours related to CTV. Titled The Big Shift: Wave II, the study also found:
- Consumers are cutting down on subscription services: Almost one in two viewers (46 per cent) have cancelled a streaming service to save money. Further, 59 per cent of viewers are willing to cancel a subscription after finishing their desired content, supporting the trend that subscribers are hopping between services to keep costs down.
- Consumers continue to want free, ad supported content: 63 per cent of consumers prefer to stream free content rather than paying for a subscription. Over the next 12 months, 32 per cent of consumers will remove a subscription CTV service and 21 per cent will add more, free, ad-supported CTV services.
- CTV is a performance channel that drives outcomes: 39 per cent of viewers have searched online and 37 per cent have visited a website after seeing a CTV ad.
“As consumers increasingly move to free, ad-supported services, this next phase of TV will be defined by both content and experience,” advises Marlow. “This means not only do streamers need to promote their content to lure overwhelmed consumers in, but they also need to have enough to keep them engaged and on the app or channel. Additionally, advertisers must prioritise relevant ad targeting– as nearly three in four viewers want ads relevant to their interests–and working with partners that provide adequate frequency capping to ensure a good consumer experience.”
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