Quarter of Americans using AVODs

A quarter of US households regularly use free ad-supported OTT services.

According to a new study from Parks Associates, 25% of US broadband households have watched video on a free, ad-based OTT service in the past 30 days.

Unlike in SVOD where Netflix is the head of the pack, there is no clear market leader for AVODs. The report found that 7% of US broadband households use The Roku Channel, 6% use ViacomCBS’s Pluto TV, and 6% use Crackle, the joint venture between Chicken Soup for the Soul Entertainment and Sony Pictures Television.

Elizabeth Parks, president of Parks Associates said: “Entertainment and communication features like offline viewing are becoming an important part of consumer viewing habits, especially for younger generations. Nearly 50% of current pay-TV subscribers have a DVR.

“VOD and DVR are key elements in operator video strategies now that OTT on-demand services are mainstream. TiVo announced a 4K streaming device at CES that aggregates where content can be accessed from, putting an emphasis on search and discovery and an integrated experience for the consumer.”

Elsewhere, the report found that a third of broadband households have trialled an OTT subscription service in the past six months, 26% have found purchasing items seen in advertisements appealing or very appealing, and that one-in-five pay-TV subscribers claim they can access an OTT service via their channel guide or on-screen menu.

The reported figure of 25% is likely to significantly increase in the coming months with the launch of NBCUniversal’s Peacock.

Launching in April, the streamer will offer a free, ad-supported option, offering ~7,500 hours of programming, including next day access to current seasons of newly broadcast series as well as “classic” shows, movies, daily news and sports, including the Olympics.