Shift from cable TV to cheaper streaming continues
More than a quarter of Americans plan to cut out cable in 2021, according to Digital TV Europe. The greater affordability of streaming services is regarded as a significant factor driving the trend. Over 50 per cent of consumers said that they would not be willing to spend over US$20 in total per month on streaming services. Viewers were more than five times more likely to prefer free or low-cost streaming TV on advertiser-supported (AVOD) services.
The 60+ age cohort is showing steady meaningful increases in OTT-only subscriptions, reports Fierce Video. The age group represents 17 per cent of all OTT-only subscribers, but represents almost a third (28 per cent) of the US adult population.
Potential Apple TV+ subscribers on free trials are reportedly ambivalent about the streaming service offered by the world’s largest consumer technology, and most valuable company, according to 9to5Mac. Some 29 per cent of those Apple TV+ users said they would not choose to continue their subscriptions after the free trial ended; 30 per cent said they would; while the remaining are undecided about paying US$5 per month for Apple TV+.
Among the largest SVODs and AVODs, Netflix’s average time rose from 26 to 31 minutes; YouTube’s was up from 25 to 27 minutes; Hulu’s from 13 to 17 minutes; and Amazon Prime Video’s from 7 to 9 minutes, reports mediapost.com.
YouTube is predominantly an AVOD, but has been trying to build a SVOD arm, associated with YouTube TV, for many years. Despite the rise in paid subscriptions, consumers are also increasingly turning to free AVOD services for viewing.
OTT market nascent in Africa
The market is set for an explosion of growth, with revenues increasing over US$1 billion from 2020, reports Digital TV Europe. The continent’s collective OTT revenues were just US$392 million at the end of 2020.
The greater affordability of streaming services is a significant factor driving the trend. Over 50 per cent of consumers said that they would not spend over US$20 per month on streaming services. Viewers were more than five times more likely to prefer free or low-cost streaming TV on advertiser-supported (AVOD) services.