Free, ad-supported streaming TV services are growing fast and expected to command significantly more advertising dollars this year.
While Netflix is reeling overdue to increased competition and consumer sensitivity to inflation, free, ad-supported streaming services are on the rise, offering thousands of programs and films in every genre and hundreds of channels at no cost.
“We strive to deliver customers the content they’d expect to see behind a paywall, but in an easy-to-navigate environment that is freely available to all,” said Lauren Anderson, Freevee’s co-head of content and programming at a presentation for advertisers in New York earlier this month. “No costs, no time slots, no arbitrary creative restrictions.”
But selling ads on major streaming platforms has largely been a means to offer lower-priced subscriptions. Consumers can watch free streaming services immediately without signing up with an email address or entering any credit card data and watch them on any device. They also offer livestreams of news, sports and entertainment on free, ad-supported streaming television channels , similar to what viewers watch on cable and broadcast.
The recent subscriber downturn at Netflix, coming in a period when competitors Walt Disney Co.‘s Disney+, Warner Bros. Discovery’s HBO Max and Paramount+ saw significant gains, indicates consumers may have hit the wall in terms of how many video streaming services they are willing to pay for each month. Some are turning to the app Truebill, which helps them cancel their subscriptions.
Last year, no single free, ad-supported streaming service had more than 15% of U.S. consumers watching each month, leaving a lot of room for growth, Sappington said.
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