About 68% of millennials surveyed by the analytics firm said they have an ad-supported streaming subscription – more than any other generation.
As streamers like Netflix and Disney look to scale their ad-supported tiers, a new survey from Samba TV and Harris X reveals that millennials are more open to using the AVOD offerings than other generations.
“Millennials are the generation that grew up on cable and were first to cut the cord, and have revealed themselves to be a core audience on AVOD and FAST platforms,” Samba TV co-founder and CEO Ashwin Navin said in a statement. “Their willingness to consume ads when streaming is a unique opportunity for advertisers to reach more than 20% of the US population, with more spending power than retiring baby boomers. By embracing an omniscreen strategy that addresses all the platforms where millennials consume video, advertisers can align their campaigns to connect with this hugely impactful audience.”
The U.S. population includes 72.2 million millennials, who have an annual spending power of over $2.5 trillion, according to Samba and Harris.
The survey, which polled over 2,500 adults from Aug. 22 – 30, found that 8 in 10 millennials stream TV shows, with 84% of them using Netflix. Roughly 73% of millennial parents said they subscribed to a streaming service just for their kids.
Approximately 68% of millennials said they have an ad-supported streaming subscription – more than any other generation – with 21% of millennial respondents who said they signed up for Netflix’s ad-supported tier. About 68% of respondents would be likely to change their streaming subscriptions if a cheaper version with ads was released, while 72% said they would watch live events on top SVOD and AVOD services if offered.
Despite embracing AVOD, millennials are also sensitive to ad fatigue, with 71% of respondents who said watching the same ad for a brand over and over again in a month would worsen their perception. In addition, the survey noted that 85% of respondents look at a mobile device while watching TV.
The findings come as Netflix reported in August that its ad tier has grown to over 10 million monthly active users. During its third quarter of 2023, the company revealed that membership to the ad tier increased nearly 70% quarter-over-quarter, with the offering now accounting for roughly 30% of all new sign-ups.
Disney said 3.3 million subscribers signed up to its ad-supported Disney+ offering in the U.S. as of the end of the third quarter. The company is expected to provide an update on the progress of the offering when it reports its earnings for the fourth quarter of 2023 on Nov. 8.
Meanwhile, Prime Video plans to begin rolling out “limited advertisements” in early 2024, starting in the U.S., U.K., Germany and Canada before expanding to France, Italy, Spain, Mexico and Australia later in the year. It will also offer a new ad-free option for an additional $2.99 per month for U.S. members. Currently, Amazon Prime, which includes Prime Video, costs $14.99 per month or $139 a year. A membership that only includes Prime Video and none of the company’s shipping benefits costs $8.99 a month.
In July, London-based research firm Ampere Analysis predicted that Netflix, Disney and others’ ad-supported tiers could generate over $10 billion in revenue domestically by 2027.
Source: thewrap.com
