What Display Daily thinks: If consumers are opting for free, ad-supported streaming services, does that signify a shift in opportunities for TV markets? It should. There’s obviously an issue with the costs of subscriptions and consumers are being savvy about how to spend their money.
It may also signify a shift in thinking about the value of TVs in the household after the pandemic. It could mean less emphasis on the TV viewing experience or a bigger opportunity for budget purchasing trends. The premium TV market is unlikely to be as hard hit as you would expect because that’s silly money, probably untouched by economic concerns, but it could signify a reduced interest in upgrading to newer, more expensive technologies.
This trend does, however, suggest that there is an opportunity for TV makers who are building their own software interfaces and infrastructure. There is obviously a transition point here from the pandemic feast on paid streaming services which was indiscriminate. That opens up the possibility for most customization and personalization of TV experiences by vendors. Think of it as a vacuum in the market.
I believe that streaming gaming, better discovery engines, and more software branding of TVs are as important, if not more so, than pure hardware specs and features. As we like to say here, dumb TVs don’t work for consumers, they are looking for an experience, and happy to revert to a more general approach to satisfy their viewing requirements.
FAST Becoming Users’ Main Option for Viewing
Recent data from market research firm Omdia indicates a significant shift in consumer habits regarding subscription video on demand (SVOD) services. The trend of stacking multiple streaming subscriptions, once prevalent among consumers, is now giving way to a more selective approach. This change is attributed to the growing popularity of free ad-supported television (FAST) channels, which are increasingly becoming the go-to option for supplementary viewing.
In the United States and Brazil, there’s a noticeable slowdown in the growth of streaming and studio services. The US, for instance, saw the average number of SVOD subscriptions per household decrease from nearly 3.5 in April 2023 to below three by November 2023, marking a drop of over 10%.
FAST channels are gaining significant traction in the US, where 46% of all video users engage with these channels weekly. Brazil has also experienced a substantial increase in FAST viewership, with weekly users now comprising 36% of the video audience, a substantial leap from just 8% in 2020.
The United Kingdom is another major market for FAST, with 21% of total video users now engaging with these channels. The FAST channel market, witnessing robust growth in the UK, Canada, and Brazil, is anticipated to generate revenues of around $8 billion by 2024.
