How OTT Services Are Monetizing Content
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Read the complete transcript of this video:
Eric Schumacher-Rasmussen: Jon, in your research, you mentioned that the number of TV sources is up something like 30% or more over the last year. Do you know the breakdown of advertising-supported versus subscription? Obviously, there's all these acronyms--AVOD, SVOD, FAST for free ad-supported TV hybrid models. Transactional. What sort of breakdown are you seeing, and has that changed in the last year?
Jon Giegengack: One of the biggest things we've seen is that almost all of the increase is being driven by streaming providers until about the last year. So now about one in every three respondents say they use at least one free ad-supported platform, so Pluto or Tubi or Crackle, at least at least some of the time.
But another huge thing that's happening is that people are stacking multiple SVODs. In the most recent wave, 50% of everyone that we talked to said they used at least two of the four biggest streaming platforms at the time, Netflix, Hulu, Amazon, or Disney+. So 50% of people used two or three, or even all four of those, and the implication of that is huge, because any one of those platforms offers in the high hundreds, if not thousands of titles. And as I said at the beginning, people are using more and more of those.
The only thing that isn't expanding that fast is just the amount of time in the day to watch television. So the fact that people are stacking those multiple SVODs means that every piece of content now has to compete harder to get a slice of that disposable time pie, and feeding back to what we talked about at the beginning, it makes figuring out where people discover these shows and why they choose some over others, even more critical than it was before.
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