Number of Video Services Used by Consumers Nears Double Digits

A survey in the U.S. and Canada by TiVo has found that the average number of video services used by consumers has risen to 9.86 from 8.8 a year ago, powered in part by increasing adoption of AVOD platforms.

Per the TiVo Video Trends Report, AVOD platforms account for 32 percent of the overall share of video services used by consumers in 2022, up from 26 percent in Q4 of last year. The average North American consumer is now using three ad-supported VOD services.

While AVOD usage is increasing, the report also found that 7 in 10 of respondents said their video entertainment spending is a moderate to high priority. Indeed, despite inflationary pressures and financial concerns, only 25 percent of respondents said they had reduced their entertainment spend.

Another key finding is that 8 in 10 consumers said they wish their paid service offered an ad-supported free option. Consumers are also hopping between services; almost a quarter of AVOD users admitted to only spending three months watching a new service until moving onto another option. Pay-TV subscribers admitted to hopping between AVOD services at more than twice the rate of broadband-only users. In addition, a quarter of pay-TV subscribers are so-called “revivers,” having cut the cord and returned.

“The results in the TiVo Video Trends Report highlight that while video entertainment remains a priority for the vast majority of consumers, FAST services allow consumers to stretch their entertainment dollar,” said Michael Goodman, director of TV and media strategies at Strategy Analytics. “Giving them additional entertainment options at no additional cost. In uncertain economic times, this financial flexibility is much appreciated by consumers.”

“Entertainment, and specifically video content, is very much a priority for consumers, but if they can get it at a lower cost, or free, consumers are demonstrating a growing tolerance for more ads as part of the content they consume,” added Walt Horstman, senior VP of monetization at TiVo.