DALLAS—New data from Parks Associates is providing additional evidence that the usage of ad-supported streaming services is skyrocketing as streaming companies hike prices and revamp their businesses strategies to push users into ad-supported services.
Parks Associates' latest research shows a dramatic increase in the use of ad-based video services, as the number of U.S. internet households that recently used an AVOD/FAST video streaming service increased from 31% in Q1 2023 to 41% in Q3 2023.
"The use of ad-supported services such as AVOD and FAST grew to 41% this quarter, confirming past predictions that more consumers will find these cost-effective options appealing," said Sarah Lee, research analyst, Parks Associates. "Streaming providers are raising prices and cracking down on account sharing in search of profitability, but consumers are struggling to make ends meet. Ad-supported business models are a win-win for both parties."
The research firm's Video Service Consumer Insights Dashboard highlights the key metrics in streaming and video services, with trending data based on Parks Associates' ongoing consumer survey work of US internet households.
The data is the second major report this week showing “fast growth in FAST” services in both advertising and usage.
Earlier this week, a new report from Xumo and Comcast Advertising, “The 2023 State of FAST,” found that advertisers are increasingly including FAST in their strategies in response to viewer habits, with 84% of buyers responding that they plan to increase their FAST investments even more in 2024. With advertisers increasing their spend year over year, consumer interest and awareness in the free service also continues to grow; in fact, the study reveals, 94% of FAST impressions are delivered on the TV screen.
