Ad-supported TV streaming rapidly rising, says Roku report

The latest report on Canadian streaming habits showed that more than half of internet users surveyed said they use AVOD platforms.

Streaming is the most popular TV source, with 75% of adult internet users choosing to watch content this way, according to Roku in its fourth annual Video on Demand (VOD) Evolution study.

Roku’s exploration of Canadian TV streaming behaviours and trends also found that ad-supported video on demand (AVOD) is rising rapidly. In the last year, 59% of those surveyed watched AVOD compared to 42% in the previous year. Another 63% plan to watch ad-supported TV streaming in the coming year ahead.

Time spent on AVOD and BVOD (Broadcaster VOD) is up 32% year-over-year among TV streamers who watch ad-supported programming. Due to concerns about rising inflation and cost-of-living, 24% said they have canceled or plan to downgrade their cable or satellite package in the next 12 months, which is up 6% from 2022.

On average, Canadian TV streamers have used or have subscribed to 3.5 paid or free streaming services in their household in 2023, which is anticipated to increase to 3.8 by 2024. Canadian TV streamers spend 26% of their time watching live TV, 20% on new releases available for the first time, 19% on new-to-them releases, 18% on repeat watching and 17% on other online video through the TV.

Canadian TV streamers rank dramas (95%) as their top TV genre choice. On the flipside, while comedy is the least popular, a sizable 87% are still streaming that genre. When it comes to live news, 48% tune in, followed by general family entertainment at 50% and live sports and events at 45%.

TV streamers use a variety of methods to discover content. The top three within TV streaming platforms include the “just released” section (42%); the “top trending” or most popular titles (34%); and “free to watch” shows and movies (31%). Outside of that, the top three methods are word of mouth/personal recommendations (50%); “coming soon” notifications (36%); and ads they’ve seen on TV promoting shows or movies (31%).

When it comes to the effectiveness of ads on streaming platforms, TV streamers are significantly more responsive to ads than non-streamers: 70% vs. 54%. Those who stream TV are taking measurable actions after viewing an ad, including visiting a brand’s website, online store, or app after seeing an ad (38%); searching online for more information about the product/brand while continuing to watch TV (36%); and placing items in online/app shopping baskets to buy later (25%).

The jury is still out on the subject of personalized TV ads. There is a 50/50 split between Canadians wanting ads tailored to their interests/preferences and those wanting impersonal ads. More viewers (54%) like ads unrelated to the content while 46% like ads that are related. Just over half (51%) prefer a single ad taking up the whole ad break but 49% prefer lots of ads filling the break. The majority of Canadians (77%) prefer every ad in a break to be different.

This is Roku’s fourth study of Canadians’ TV streaming habits and is an update to its research in 2022. The study is based on the results of an online survey of Canadian adults aged 18 or over who use the internet and watched TV at least once in the last month. Fuse Insights’ research, which was commissioned by Roku, took place between June and July, with a sample size of 2,100 Canadians nationally representative by age, gender, and geography.

This story by Patti Summerfield originally appeared in Media in Canada

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