Audience Shows Indifference Toward Television Advertisements, According to TiVo Data
In the ever-evolving world of streaming, a few key trends are emerging. A recent survey by TiVo reveals some interesting insights about the preferences of viewers when it comes to content and cost.
Firstly, the prospect of ads on streaming services like Netflix or HBO Max is considered ridiculous by some, while 79% of respondents prefer free, ad-supported streaming services over paid ones. However, 80% of respondents report lower quality content on many free, ad-supported platforms. This highlights the challenge for streaming giants: how to balance the desire for free content with the expectation of high-quality programming.
Streaming services like Hulu and CBS All Access offer cheaper, ad-supported versions, but they still cost a few dollars a month. Services like IMDb TV and Vudu require sifting through a lot of average content to find recent, decent options. These platforms might be appealing for cost savings, but the quality of content remains a concern for many viewers.
On the other hand, streaming giants charge premiums for access to originals and bigger budget titles. Last year, Disney charged households $30 for early access to the live-action remake of Mulan, in addition to monthly subscription costs. This strategy seems to be paying off, as 31% of respondents said they would pay to stream new films at home even after the pandemic.
However, subscription fatigue is real. With too many services, not enough good content, and rising subscription costs, some viewers are growing weary. Focusing on quality over quantity could make existing free, ad-supported services more attractive to consumers. Companies like Amazon (with Amazon Freevee) and Spotify are offering or planning free, ad-supported streaming services that users may prefer for cost savings. Amazon integrates Freevee's ad-supported content into Prime Video, while Spotify provides a free streaming option with ads.
Creators, however, may not be enthusiastic about ads on Big Serious Movies produced by Netflix or premiering on HBO Max. This could pose a challenge for streaming services looking to monetise their content through advertising. Subscription-based models remain popular among creators as they offer a more predictable revenue stream.
HBO Max is reportedly struggling with its planned ads rollout. The service is preparing for a misguided ads rollout, according to reports, which could further exacerbate viewer frustration with the proliferation of ads in streaming content.
In conclusion, the streaming landscape is complex and ever-changing. Viewers want good quality content, but they also want it to be affordable. Streaming services must find a balance between these two demands, while also addressing concerns about subscription fatigue and the potential impact of ads on the viewing experience.
