Report: Nearly 7 in 10 U.K. Consumers Prefer Ad-Supported Streaming

According to LG Ad Solutions’ latest streaming report, 68 percent of U.K. consumers prefer to stream free ad-supported content rather than pay for a subscription.

The report, The Big Shift: United Kingdom Wave II, surveyed more than 800 U.K. consumers in August 2023. It found that U.K. consumers are increasingly shifting away from linear TV, with 25 percent of those surveyed saying they are watching less linear television than a year ago. Rather, ad-supported streaming services are growing in popularity.

Among U.K. viewers, smart-TV applications are the leading choice for watching live TV, with 42 percent preferring this method. The availability of live sports is a driving force, with 53 percent of U.K. TV viewers watching sports content via streaming.

More than one in three U.K. TV viewers are concerned about TV costs, with 36 percent reporting that they have canceled a streaming service because of economic concerns. While 86 percent of U.K. consumers pay for one or more subscription services, 55 percent are willing to cancel a subscription after watching the desired content.

Regarding ads versus subscriptions, 20 percent of U.K. TV viewers expect to remove a subscription streaming service in the next 12 months, while 13 percent will add a free ad-supported streaming service.

In the U.K., the top-ranked recommendation source for content is the homepage of the TV screen (53 percent), above recommendations from friends and family (43 percent).

Looking at the way viewers are multitasking, 91 percent are using a mobile device or laptop while watching TV, with 64 percent doing so “always” or “often.” Their second-screen activities include messaging (54 percent), shopping (35 percent) and gaming (30 percent).

“Nearly all U.K. households are now reachable via CTV, and with a consumer preference for ad-supported content, marketers need to ensure that advertising on free ad-supported content is part of their media mix,” said Ed Wale, VP for Europe at LG Ad Solutions. “Our data shows that after seeing a CTV ad, U.K. TV viewers are more likely to search online, visit a website and talk about the ad or product than U.S. viewers. It’s clear that CTV is a performance channel and gives marketers the chance to reach and interact with an engaged audience.”