Skip to content
Workflows — Technology — Ip — Media — Content — Ott — Video — Fcc — Streaming

U.S. Ad-Based Streaming Video on Demand (SVOD) Subscriptions Expected to Reach Nearly 278 Million by 2029

Majority of Viewers Consume Streaming Ads via Mixed Sources: Free Streaming Platforms, Ad-supported Subscription Services, and Ad-inclusive Live/Linear TV Services

,   and  Administrator
2 min read
Majority of Spectators Glean Advertisements via Blend of Complimentary Streaming Platforms, Paid...
Majority of Spectators Glean Advertisements via Blend of Complimentary Streaming Platforms, Paid Subscription Services' Ad-Inclusive Tiers, and Live/Linear VMVPD Providers Offering Advertisements

U.S. Ad-Based Streaming Video on Demand (SVOD) Subscriptions Expected to Reach Nearly 278 Million by 2029

Get ready for a revolution in your living room! The next few years will witness a boom in ad-supported subscription-based streaming services, reaching an impressive 278 million viewers by 2029, according to Parks Associates.

With an estimated 315 million TV viewers in the U.S. (representing nearly 97% of households), it's clear that more than 88% of Americans will be tuning into these ad-supported streaming video on demand (SVOD) services.

The rise of ad-based services brings exciting opportunities not just for additional revenue, but also for more engaging and personalized experiences. Interactive features, such as shoppable ads, are set to blur the lines between entertainment, content consumption, and online shopping, creating a seamless sales channel.

Industry players are encouraged to improve the interactive TV experience for both viewers and advertisers, says Jennifer Kent, Vice President of Research at Parks Associates. By connecting workflows, effectively using data, and optimizing user experience elements, they can create sustainable, scalable solutions that cater to the long-term needs of this shift.

A new white paper, titled "Interactive & Shoppable TV: The Next Wave of CTV Revenues" - released in partnership with Adeia - delves deeper into the service provider's opportunity to enhance the consumer experience and capitalize on the growing interest in interactivity and commerce through the TV. Findings reveal strong consumer preferences for interactive features and ad-based activities across TV and mobile platforms, including shoppable advertisements.

Here are some key insights from the white paper:

  • Commercial Engagement: 52% of U.S. internet households are likely or very likely to engage in commercial activities through a connected TV (CTV) platform.
  • Ad-Based TV Consumption: 82% of consumers watch streaming ads across a combination of ad-based tiers of subscription streaming services, free streaming services, and virtual Multichannel Video Programming Distributors (vMVPDs).
  • Ad-Based Subscriptions: 59% subscribe to an ad-based SVOD tier, such as Netflix, Disney+, or Peacock.
  • Free Ad-Based Streaming: 47% watch free ad-based streaming services, like Tubi, Pluto, and The Roku Channel.
  • VMVPD Usage: 22% watch streaming pay-TV services, vMVPDs, like YouTube TV, Hulu + Live TV, or Philo.

If this intrigues you, stay tuned for more TV tech news, trends, and industry insights straight to your inbox. Sign up now!

  1. As the age of ad-supported streaming services draws near, the FCC should ensure that media technology workflows are effective and user experiences are optimized to cater to this shift in entertainment.
  2. By 2029, more than 52% of U.S. internet households are likely to engage in commercial activities through a Connected TV (CTV) platform, signifying a growing interest in shoppable ads and interactive content.
  3. The rise of ad-based streaming services will blur the lines between entertainment, content consumption, and online shopping, creating a seamless sales channel that media companies must take into account in their technology and workflow strategies.
  4. With 82% of consumers watching streaming ads across multiple platforms, media industry players must consider ad-based TV consumption as a crucial aspect of their entertainment offerings when embracing the future of Interactive and Shoppable Streaming Services.
  5. The interactive and shoppable TV revolution is already underway, with 59% of viewers subscribing to an ad-based SVOD tier such as Netflix, Disney+, or Peacock, and 47% watching free ad-based streaming services like Tubi, Pluto, and The Roku Channel.

Read also:

    Latest