The other half is split between ad-free services (like Apple TV+), ad-reliant services (like Pluto TV), and hybrid services (like Hulu). When added together, there is a tremendous amount of streaming happening without ads, which is how many users like it. As Disney+ becomes more popular, the share of time spent with ad-supported streaming services will decline further.

The long tail that makes up the remaining fourth is split between ad-free services (like Apple TV+), ad-reliant services (like Pluto TV), and hybrid services that have ad- supported and ad-free tiers (like Peacock). Comscore had similar findings. It estimated that Netflix, Prime Video, and Disney+ accounted for about half of total OTT viewing hours in July 2020.

Meanwhile, Netflix is licensing its original show “Narcos” to Pluto TV, ViacomCBS’ free ad-supported video-on-demand (AVOD) product. Netflix is usually on the other end of these deals—paying to receive a show rather than the other way around. But this isn’t the first time Netflix licensed a show to another service. In 2018, it gave Comedy Central the rights to broadcast “Bojack Horseman” on linear TV.

ViacomCBS already owns multiple paid and free streaming services such as CBS All Access and Pluto TV. Paramount Plus will aggregate the conglomerate’s media properties into one service so that it will be better able to compete with streaming juggernauts like Netflix and Amazon Prime Video. Digital cable bundles are getting fatter. AT&T eliminated its cheap Watch TV skinny bundle.

The long tail that makes up the remaining fourth is split between ad-free services (like Apple TV+), ad-reliant services (like Pluto TV), and hybrid services that have ad-supported and ad-free tiers (like Peacock). When added together, there is a massive amount of streaming happening without ads, which is how many users like it.

Across five of the major ad-supported streaming platforms (Roku, Hulu, Peacock, Pluto TV and Tubi), ad revenues jumped 31% year-over-year (YoY) to reach $849 million last quarter, according to new estimates from MoffettNathanson Research. That increase is in line with our expectations for US connected TV (CTV) advertising for 2020, where most AVOD dollars are likely going.

Free ad-driven streamers (like YouTube, Pluto TV and Tubi). Virtual cable packages (like Sling TV, YouTube TV and fuboTV). Video products from social media firms (like Facebook, Snapchat and TikTok). Online video games (like Fortnight) and esports platforms (like Twitch). To marketers’ dismay, the biggest streaming entrants are either entirely ad free or offer an ad-free tier.

Excessive ad frequency is most often a byproduct of buying connected TV ad inventory from different providers that may include a publisher as well as platforms such as Roku, Hulu or Pluto TV, for example.

Pluto TV also devoted a sizable portion of its digital budget (24.3%) to social ads between January 2019 and July 2020. In terms of desktop/laptop advertising, the media industry will decrease its spending by 7.5% to $2.57 billion in 2020. The entertainment industry will see a more significant decline in desktop/laptop spending, decreasing by 17.5% to $1.51 billion this year.

The video streaming long tail includes ad-supported video on-demand (AVOD) services like Tubi, Amazon-owned IMDb TV, Sony Crackle, Popcornflix, Xumo and Viacom-owned Pluto TV. TV makers Samsung and Vizio launched free streaming services, too. These services are growing but are small compared with YouTube, Roku or Hulu.

“For example, Tubi and Pluto TV have higher exposure to mobile than the TV networks, such as the AMC app, the Hulu app, and the like.” He estimates that while less than 10% of time spent with Hulu would be on mobile devices, Tubi’s figure would be “much, much larger than that.”. Second, people will begin to move around more post-pandemic, which should increase mobile viewing.

Five leading platforms offering AVOD models—Pluto TV, Roku, Hulu, Tubi, and Peacock—grew revenues by 31% YoY in Q2 2020, reflecting the increased viewing, according to MoffettNathanson Research. Even before the pandemic, most mobile games monetized via ads.

For what it’s worth, according to the companies themselves, Tubi surpassed 20 million MAUs in May, Pluto reached 18 million MAUs in July, and Xumo eclipsed 5.5 million MAUs in April. Xumo and Pluto are a bit different from most free streaming services since they offer linear and on-demand options.

The other half is split between ad-free services (like Apple TV+), ad-reliant services (like Pluto TV), and hybrid services (like Hulu). When added together, there is a tremendous amount of streaming happening without ads, which is how many users like it. As Disney+ becomes more popular, the share of time spent with ad-supported streaming services will decline further.

Other free ad-supported services like Xumo, The Roku Channel and Pluto TV are beefing up their content licensing. In April, Viacom announced that it would add content from 15 of its TV channels to Pluto TV. Viacom purchased Pluto TV in January 2019 for a reported $340 million.

Additionally, free ad-supported streamers like Tubi and Pluto TV are gaining viewers. But their audiences are quite small compared with well-known SVODs. In a February 2019 survey of 2,003 US internet users, Deloitte found that free ad-supported video sites accounted for just 29% of the time that people spent viewing video.