Convenience over experience; that’s how people view the future of the OTT market. For viewers, it’s the ultimate alternative to cable networks. In terms of cable networks, a significant share of the finances is raised from ad slots, as per a new survey. The audience wants OTT to follow a similar path.
A study was conducted on British adults, asking them questions about their perspectives on OTT subscription plans. Surprisingly, most of them opted for a free but advertisement-supported plan for their subscription, with a whopping 63% in agreement.
Even when considering multiple subscription options, if free plans were available, 60% of adults would consider subscribing to up to three platforms. This brings us full circle, as users seem to prefer a cable model, potentially undermining the essence of OTT.
As time goes on, OTT becomes an irreplaceable part of life. 83% of those surveyed spend up to two hours a day on OTT platforms, marking an 11% increase from last year’s statistics. Content diversity on the platforms played a pivotal role in this shift.
In the survey, a significant 74% of participants expressed their appreciation for the flexibility of watching on-demand content on CTV, while 61% highlighted the variety of content available.
Nonetheless, a noteworthy 48% indicated that cost was the primary reason for canceling their streaming subscriptions. This cost pressure is steering viewers towards ad-supported alternatives, creating a promising avenue for advertisers to connect with receptive audiences.
Additionally, 41% of English users state that they can choose an ad-supported plan for a more affordable platform.
As more platforms opt for advertisement-supported plans with a lower price tag, more people are opting for them. This trend is evident in reports from Netflix and Prime Video.
The future of OTT indeed lies in ad-supported plans, as they will make the masses lean towards streaming services. Even the recent trend in sports streaming, a significant share of cable revenue, is shifting towards a smartphone audience, following the Hotstar and JioCinema strategy, which appears to have a promising future.