Its average revenue per user (ARPU) is $12.96, well above many of its entirely or partly ad-supported brethren, and just slightly behind subscription-supported Netflix ($14.78). YouTube recently added thousands of ad-supported TV shows for free.

Peacock, Discovery+, and HBO Max are just a few of the streamers that have recently launched ad-supported tiers. We also published our first forecast for free premium video streaming viewers, which we define as individuals of any age who watch videos on a free-to-access ad-supported platform that features professionally produced content at least once per month.

On today's episode, we discuss whether Disney+ is back on track, how to read HBO Max's numbers, and whether Paramount+ can keep up. For "In Other News," we talk about why folks are cutting the cord today and why there's been a boost in ad-supported video-on-demand (AVOD) ad spending. Tune in to the discussion with our analyst Ross Benes.

Digital video viewership continues to rise in the UK, despite already high penetration. A thirst for subscription content hasn’t quite been sated, but with a cost-of-living crisis looming, ad-supported options might garner interest among consumers.

This compares with 40% for over-the-top (OTT) streaming services. On the flip side, 12% expected to decrease traditional TV expenditures, while the percentages who would do the same with data-driven or addressable formats were negligible. If TV ad spending is in a clear downward cycle, the attrition in viewership is even more pronounced.

US linear TV ad spending will hit $68.35 billion this year and fall to $64.94 billion in 2026. Despite that decline, ad spending on linear and connected TV (CTV) combined will increase from $87.24 billion this year to more than $100 billion in 2026 due to the surge in CTV viewing.

The Ad-Supported BVOD Proposition Is Promising but Proportionally Small. BVOD spending is on the up, nearly doubling in size between 2020 and 2026. However, even by the end of the forecast period, it will total just £907.1 million ($1.25 billion). This is compared with traditional TV’s £4.85 billion ($6.67 billion).

Among major streaming video platforms, Peacock is the one where US subscribers are most likely to have the ad-supported version. Just 20% of Peacock subscribers shell out for the ad-free tier.

Standard Media Index (SMI) estimated that in Q3 2021, OTT CPMs were 28% above those of linear TV in the US. These price increases in TV and CTV advertising are compounded by two key factors:. Inflation. In the US, it’s running at the fastest pace in four decades. The erosion of legacy identifiers.

The news: Disney's effort to prioritize brand safety and a family-friendly image for Disney+’s upcoming ad-supported subscription tier extends to its content. The streaming service recently removed a controversial word from a scene in a Marvel Cinematic Universe short, one of several posthumous edits made to content on the platform. More on this: The edited scene is not the first on the platform.

In addition, several services offer hybrid plans that range from low-priced ad supported tiers to more expensive ad-free levels. These include HBO Max, Hulu, Paramount+, Discovery+, and Peacock. Consumers want choice, and after a flurry of SVOD launches and a pandemic-induced surge in on-demand viewing, there’s now an opening for ad-supported OTT services and device manufacturers with free channels.

Subscriber flight costs Netflix $50 billion in value: Streaming giant suffers worst loss in over a decade and risks losing more users by spending less on original content, charging more for shared passwords, and introducing ad-supported tiers.

But as more and more streaming services begin to offer free or cheaper ad-supported subscription tiers, CNN+’s subscription-only model is beginning to look outdated. Still, Warner Bros. Discovery might not be able to patch up CNN+ with a post-launch, ad-supported tier.

Hulu raked in $2.1 billion in ad revenues between October 2020 and November 2021, by far the most of any ad-supported video-on-demand (AVOD) platform in the US.