Ad-Based OTT: Growth in FAST and AVOD Services

This report explores factors driving the growth of ad-based online video, profiles and compares market leaders, and assesses consumer preferences in watching ad-based content. It quantifies the number of households using ad-based online video services and includes a five-year forecast of viewer growth.

ANALYST INSIGHT:

"Ad-supported OTT has converged on two programming models: linear, also known as FAST (Free Ad-Supported Television), and on-demand, also known as AVOD (Ad-supported Video On Demand). Ad-based services are benefiting from the current uncertain economic climate. Consumers are evaluating discretionary spending, and switching from legacy pay-TV or subscription-based streaming services is a means of cutting costs," said Alan Bullock, Senior Contributing Analyst, Parks Associates.

Key Questions:

What is the state of the ad-supported video streaming market?

What is the difference between FAST and AVOD, and which OTT services are using each model?

What factors are contributing to the growth of ad-supported streaming services?

Which ad-supported streaming video services are most popular?

How will new subscription tiers from Disney+, Netflix, and others affect the market?

Bottom Line

Overview of Ad-Based Streaming

Growth of Streaming Services
Defining the Market: FAST, Linear, AVOD, Hybrid
US Consumers' Use of Ad-Supported Streaming Services
Ad Sales / Revenues
Content Acquisition

Ad-Based Streaming Trends

New Advertising Models
Built-in Content for Hardware Platforms
Bundling and Consolidation
OTT Service Stacking and Spending
Consumers Diversify Away from The Big Three
Social Media Content Integration
Co-Viewing
Outlet for Niche Content

Competitive Landscape

Ad-Supported OTT Service Leaders

Ad-Supported Service Profiles
- Summary by Business Model
- Detailed Profiles

Ad-Supported Service Highlights
- Amazon Freevee
- Crackle Plus
- Paramount+
- Peacock
- Pluto TV
- Roku
- VIZIO
- XUMO

Technology Provider Profiles

Market Size and Forecast

Implications and Recommendations

Appendix

Glossary
Parks Associates Entertainment Video Ecosystem
Companies Briefed or Researched for this Report
List of Figures

Citations

Attribution

List of Figures

Linear Channel Guide from The Roku Channel
On-Demand Selections from The Roku Channel
Households Using Ad-Based OTT Video Services (2019-2022)
Top Ten Ad-Based OTT Video Services
Ad-Based Service Viewing Frequency
Drivers of Ad-Based OTT Service Usage
AVOD Users' Attitudes towards Advertising Integration
Consumers' Primary Streaming Video Products (2018-2021)
Average Number of OTT Service Subscriptions (2016-2022)
Average Household Spending for OTT Streaming Services by Number of Subscriptions
OTT Service Subscriptions: Big Three vs. Non-Big Three (2017-2022)
Likelihood of Using Co-Viewing Feature from Favorite Video Service
Estimated Monthly Viewers, Leading Ad-Supported OTT Services (2017-2022)
Roku Platform vs. Player Revenue and Gross Profit/Loss (2017-2022)
Walmart Shopping on Roku
Ad-Based OTT Services Forecast (2022-2027)
Entertainment Video Services Ecosystem