The TV streaming landscape has transformed significantly in the last five years, and if you thought it was dynamic before, expect double to come.
Consumer choice just got even bigger, and with it, more free TV streaming to choose from. The ‘Streaming Wars’ that were tipping in favour of Subscription Video-on-Demand (SVOD) have come back full circle towards more ad-supported business models in 2022. Consumers are keen to experiment and key media players have launched new advertising options.
This year’s report on Canadian TV streaming behaviour paints a picture of the new normal, with research taking place after the majority of COVID-related restrictions were relaxed.
These are the results of our TV streaming study, now in its third year. From the State of TV Streaming to Video-on-Demand Evolution and what we believe to be a streaming revolution, 2023 looks to be a full part of the ‘Streaming Decade;’ a year where marketers will gain more access to reach consumers through ad-supported TV streaming.
The march from cable to Video-on-Demand (VOD) continues, with Canadians subscribing to more streaming platforms. Advertising Video-on-Demand (AVOD) services are expected to make greater gains, while the number of SVOD services streamers expect to use in the next 12 months is likely to remain in flux as streaming platforms continue to evolve their offerings.
Canadians appear to be happy with their experiences, with half of streamers saying that streaming satisfied their TV needs. Nearly half (49%) of streamers are now streaming live TV, a dramatic increase from 30% in 2020 while 18 per cent of TV Streamers plan to cancel or downgrade their cable or satellite package in the next 12 months.
Time spent with VOD services is diversifying, with nearly half of streamers planning to make some change to their streaming services in the next 12 months – enter the FlexiVODs (consumers that flexibly change TV streaming habits in response to evolving TV streaming offerings and programming needs).
Virtually all (95%) streamers have at least one modern day tension they are dealing with from the everyday cost of living through to health, the environment, education and caring for loved ones; most streamers feel they have less disposable income than before.
An understanding of these pressures on consumers along with advances in advertising capabilities presented by Smart TVs – including automatic content recognition (ACR) – helps marketers improve advertising strategies with more targeted, engaging and impactful plans as well ensuring they do not appear tone deaf in their messaging.
Upon this backdrop of more consumers streaming TV, and concerns with regards to greater inflation and cost of living, the horizon for advertisers is opportunity. As more consumers move back into ad-supported environments, this white paper helps marketers build an informed perspective on business and communications strategies, an imperative as more than one in four streamers (26%) have changed grocery shopping habits and brands due to more online shopping since COVID.
Netflix has launched an ad-supported tier for subscribers, as has Disney+. Our research also suggests consumers’ appetite for buying into their favourite TV shows and movies both on and off screen, presents exciting possibilities for brand partnerships and the ability to maximise moment marketing.
TV streaming is increasingly a place to reach some key audiences. Greater subscriber numbers, particularly among AVOD services, unlock once unreachable consumers. With Canadians spending more time streaming TV, marketers with TV or video advertising in their media plans need to consider TV streaming advertising if they want to reach the largest audience base.