{"id":131670,"date":"2023-05-07T09:04:15","date_gmt":"2023-05-07T09:04:15","guid":{"rendered":"https:\/\/amplify.nabshow.com\/?post_type=articles&#038;p=131670"},"modified":"2026-03-05T02:08:02","modified_gmt":"2026-03-05T02:08:02","slug":"capitalize-connected-tv-problem-solution-streamers","status":"publish","type":"articles","link":"https:\/\/jwolfepr.com\/dev\/articles\/capitalize-connected-tv-problem-solution-streamers\/","title":{"rendered":"Why Connected TV Is Both an Answer and a Question for Premium Streamers"},"content":{"rendered":"\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-columns article-content is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"630\" data-attachment-id=\"168484\" data-permalink=\"https:\/\/jwolfepr.com\/dev\/articles\/capitalize-connected-tv-problem-solution-streamers\/natasha-lyonne-in-peacock-series-poker-face-photo-by-phillip-caruso-peacock\/\" data-orig-file=\"https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/PokerFace-feature.jpg?fit=1200%2C630&amp;ssl=1\" data-orig-size=\"1200,630\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Natasha Lyonne in Peacock series \u201cPoker Face,\u201d photo by Phillip Caruso\/Peacock\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/PokerFace-feature.jpg?fit=1024%2C538&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/PokerFace-feature.jpg?resize=1200%2C630&#038;ssl=1\" alt=\"\" class=\"wp-image-168484\" srcset=\"https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/PokerFace-feature.jpg?w=1200&amp;ssl=1 1200w, https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/PokerFace-feature.jpg?resize=300%2C158&amp;ssl=1 300w, https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/PokerFace-feature.jpg?resize=1024%2C538&amp;ssl=1 1024w, https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/PokerFace-feature.jpg?resize=768%2C403&amp;ssl=1 768w, https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/PokerFace-feature.jpg?resize=640%2C336&amp;ssl=1 640w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><figcaption class=\"wp-element-caption\">Natasha Lyonne in Peacock series \u201cPoker Face,\u201d photo by Phillip Caruso\/Peacock<\/figcaption><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<hr class=\"wp-block-separator has-text-color has-luminous-vivid-amber-color has-alpha-channel-opacity has-luminous-vivid-amber-background-color has-background\"\/>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-luminous-vivid-amber-color has-alpha-channel-opacity has-luminous-vivid-amber-background-color has-background\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">TL;DR<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The ubiquity of connected TV in US households is proving to be the savior for major streaming services as viewers actively embrace ads in return for cheaper content.<\/em><\/li>\n\n\n\n<li><em>Ad-supported services are successfully counteracting rises in premium SVOD costs across the board. <\/em><em>In one year, the overall monthly fee for all services combined climbed 20%.<\/em><\/li>\n\n\n\n<li><em>By 2024, nearly half of the US population is expected to use ad-supported streaming.<\/em><\/li>\n<\/ul>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-luminous-vivid-amber-color has-alpha-channel-opacity has-luminous-vivid-amber-background-color has-background\"\/>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-luminous-vivid-amber-color has-alpha-channel-opacity has-luminous-vivid-amber-background-color has-background\"\/>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">READ MORE: <a href=\"https:\/\/research.mountain.com\/insights\/rising-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Inflation and the Rising Costs of Streaming Are Driving Viewers to Ads (MNTN Research)<\/a><\/h3>\n\n\n\n<p>If you subscribe to the seven biggest SVODs in the US this year you\u2019ll be paying upwards of $90 per month \u2014 $15 more than you paid in 2022. Of course, few people actually do so and as costs continue to climb three or four premium content services will start to feel more expensive.<\/p>\n\n\n\n<p>Despite being forced into offering cheaper advertising-supported options, however, the major streamers seem to have struck upon a model that\u2019s a win-win for all. While consumers are cutting back on spending, they\u2019re not unsubscribing \u2014 they\u2019re just migrating to ad-supported streaming<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"1257\" data-attachment-id=\"168485\" data-permalink=\"https:\/\/jwolfepr.com\/dev\/articles\/capitalize-connected-tv-problem-solution-streamers\/cr-mntn-research\/\" data-orig-file=\"https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/streaming01.png?fit=1200%2C1257&amp;ssl=1\" data-orig-size=\"1200,1257\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"streaming01.png\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Cr: MNTN Research&lt;\/p&gt;\n\" data-large-file=\"https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/streaming01.png?fit=978%2C1024&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/streaming01.png?resize=1200%2C1257&#038;ssl=1\" alt=\"Cr: MNTN Research\" class=\"wp-image-168485\" srcset=\"https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/streaming01.png?w=1200&amp;ssl=1 1200w, https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/streaming01.png?resize=286%2C300&amp;ssl=1 286w, https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/streaming01.png?resize=978%2C1024&amp;ssl=1 978w, https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/streaming01.png?resize=768%2C804&amp;ssl=1 768w, https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/streaming01.png?resize=640%2C670&amp;ssl=1 640w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><figcaption class=\"wp-element-caption\">Cr: MNTN Research<\/figcaption><\/figure>\n\n\n\n<p>\u201cThe ability to offer access to the same hit programming for less money is a compromise that benefits all parties,\u201d sums up <a href=\"https:\/\/research.mountain.com\/insights\/rising-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">MNTN Research<\/a>. \u201cStreaming services help to mitigate any major subscriber loss by lowering the barrier to entry in exchange for advertiser dollars \u2014 and viewers are more than happy to agree to this proposition.\u201d<\/p>\n\n\n\n<p>MNTN has crunched the numbers and finds that while streamers continue to raise prices \u2014 and expect to take a hit in subscribers \u2014 they are making up for this with enticing AVOD packages.<\/p>\n\n\n\n<p>According to MNTN, Netflix\u2019s new ad-supported model has been well-received. <a href=\"https:\/\/variety.com\/2023\/digital\/news\/netflix-ad-tier-jeremi-gorman-1235481048\/\" target=\"_blank\" rel=\"noreferrer noopener\">Netflix executives<\/a> are pleased with its adoption rate, and the offering is predicted to hit 7.5 million US subscribers by the end of this year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">READ MORE: <a href=\"https:\/\/variety.com\/2023\/digital\/news\/netflix-ad-tier-jeremi-gorman-1235481048\/\" target=\"_blank\" rel=\"noreferrer noopener\">Netflix Is \u2018Pleased With the Growth\u2019 of Its Ad Tier So Far, Head of Advertising Says (Variety)<\/a><\/h3>\n\n\n\n<p>Disney has also seen solid adoption of its new ad tier, which is projected to account for <a href=\"https:\/\/www.tomsguide.com\/news\/disney-plus-with-ads-is-live\" target=\"_blank\" rel=\"noreferrer noopener\">88% of its global subscriptions<\/a> by 2028.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">READ MORE: <a href=\"https:\/\/www.tomsguide.com\/news\/disney-plus-with-ads-is-live\" target=\"_blank\" rel=\"noreferrer noopener\">Disney Plus with ads is live \u2014 and it beats Netflix (Tom\u2019s Guide)<\/a><\/h3>\n\n\n\n<p>Per the research, these sign-ups aren\u2019t being driven exclusively by new subscribers; Disney says that <a href=\"https:\/\/www.adweek.com\/lostremote\/1-in-4-disney-subscribers-may-opt-for-ad-supported-tier\/69396\" target=\"_blank\" rel=\"noreferrer noopener\">one in every four<\/a> paid premium subscriptions may switch over to the ad tier. The service now has a goal of signing up 260 million subscribers to its ad-free option by the end of 2024.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">READ MORE: <a href=\"https:\/\/www.adweek.com\/lostremote\/1-in-4-disney-subscribers-may-opt-for-ad-supported-tier\/69396\" target=\"_blank\" rel=\"noreferrer noopener\">1 in 4 Disney+ Subscribers May Opt for Ad-Supported Tier (Adweek)<\/a><\/h3>\n\n\n\n<p>Indeed, so popular are free or ad-supported streaming services that <a href=\"https:\/\/forecasts-na1.emarketer.com\/6143b687b215ff0d608820a7\/61426e2cb215ff0d60882090\" target=\"_blank\" rel=\"noreferrer noopener\">eMarketer predicts<\/a> that by the end of this year households that don\u2019t pay for TV will outnumber the ones that do. <a href=\"https:\/\/research.mountain.com\/insights\/consumers-and-ad-supported-streaming-looking-forward-to-2023\/\" target=\"_blank\" rel=\"noreferrer noopener\">As MNTN reports<\/a>, eMarketer foresees that by 2024 nearly half the US population (158.5 million viewers) will be streaming ad-supported content.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">READ MORE: <a href=\"https:\/\/research.mountain.com\/insights\/consumers-and-ad-supported-streaming-looking-forward-to-2023\/\" target=\"_blank\" rel=\"noreferrer noopener\">Consumers and Ad-Supported Streaming: Looking Forward to 2023 (MNTN Research)<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/streaming02.png?ssl=1\" alt=\"Cr: MNTN Research\"\/><figcaption class=\"wp-element-caption\">Cr: MNTN Research<\/figcaption><\/figure>\n\n\n\n<p>What is happening is not just the offer of decent quality content for less money in exchange for watching ads.<\/p>\n\n\n\n<p>What is happening is that viewers are actively embracing ads as something they are familiar with, and that the market will grow if those ads become more relevant and targeted.<\/p>\n\n\n\n<p>That can happen since most viewing of streaming services happens on connected devices \u2014 mostly the living room TV.<\/p>\n\n\n\n<p>Studies show that consumers aren\u2019t just tolerating <a href=\"https:\/\/mountain.com\/performance-tv\/how-connected-tv-advertising-works\/\" target=\"_blank\" rel=\"noreferrer noopener\">CTV ads<\/a> in exchange for keeping up with their shows; they\u2019re embracing them more than other ad channels. <a href=\"https:\/\/www.globenewswire.com\/news-release\/2020\/08\/25\/2083307\/0\/en\/Unruly-Data-Uncovers-Consumer-Attitudes-Toward-Connected-TV-CTV-During-COVID-19-Including-Consumption-Behaviors-and-Ad-Preferences.html\" target=\"_blank\" rel=\"noreferrer noopener\">73% of consumers<\/a> say they prefer \u201cad-supported CTV viewing\u201d over a \u201cno ads\u201d model, with<a href=\"https:\/\/mountain.com\/blog\/60-of-streamers-give-high-enjoyment-ratings-to-shows-with-customized-ads\/\" target=\"_blank\" rel=\"noreferrer noopener\"> 60% saying<\/a> they prefer ads that are customized to them \u2014 something that CTV\u2019s targeting allows.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/jwolfepr.com\/dev\/wp-content\/uploads\/2024\/09\/streaming03.png?ssl=1\" alt=\"Cr: MNTN Research\"\/><figcaption class=\"wp-element-caption\">Cr: MNTN Research<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">READ MORE: <a href=\"https:\/\/mountain.com\/performance-tv\/how-connected-tv-advertising-works\/\" target=\"_blank\" rel=\"noreferrer noopener\">How Connected TV Advertising Works (MNTN Research)<\/a><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">READ MORE: <a href=\"https:\/\/www.globenewswire.com\/news-release\/2020\/08\/25\/2083307\/0\/en\/Unruly-Data-Uncovers-Consumer-Attitudes-Toward-Connected-TV-CTV-During-COVID-19-Including-Consumption-Behaviors-and-Ad-Preferences.html\" target=\"_blank\" rel=\"noreferrer noopener\">Unruly Data Uncovers Consumer Attitudes Toward Connected TV (CTV) During COVID-19, Including Consumption Behaviors and Ad Preferences (Unruly)<\/a><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">READ MORE: <a href=\"https:\/\/mountain.com\/blog\/60-of-streamers-give-high-enjoyment-ratings-to-shows-with-customized-ads\/\" target=\"_blank\" rel=\"noreferrer noopener\">60% of Streamers Give High Enjoyment Ratings to Shows with Customized Ads (MNTN Research)<\/a><\/h3>\n\n\n\n<p>\u201cThese consumers overwhelmingly watch their streaming services, and ads, on their television,\u201d Notes MNTN. \u201cThis gives them a big-screen experience that helps to capture their attention \u2014 but also easily enables them to take action as 95% of consumers stream TV with a smartphone on hand.\u201d<\/p>\n\n\n\n<p>In sum, while consumers are cutting back on discretionary spending, the industry-wide embracing of ad-supported content has helped to stem subscriber loss \u2014 and even boost subscription numbers.<\/p>\n\n\n\n<p>\u201cWhile streaming TV once prided itself on not featuring ads like its <a href=\"https:\/\/mountain.com\/blog\/linear-tv-versus-performance-tv\/\" target=\"_blank\" rel=\"noreferrer noopener\">linear TV<\/a> forebearer, CTV\u2019s ability to target ads on a granular level has made <a href=\"https:\/\/mountain.com\/blog\/your-guide-to-connected-tv-advertising\/\" target=\"_blank\" rel=\"noreferrer noopener\">TV advertising<\/a> less obtrusive \u2014 and more enjoyable \u2014 for viewers.<\/p>\n\n\n\n<p>\u201cThis ability to save money, watch on-demand exclusive content, and get contextually relevant ads has changed how consumers, streamers, and brands think about advertising.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">READ MORE: <a href=\"https:\/\/mountain.com\/blog\/linear-tv-versus-performance-tv\/\" target=\"_blank\" rel=\"noreferrer noopener\">What Is Linear TV Advertising and How Does It Work? (MNTN Research)<\/a><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">READ MORE: <a href=\"https:\/\/mountain.com\/blog\/your-guide-to-connected-tv-advertising\/\" target=\"_blank\" rel=\"noreferrer noopener\">TV Advertising Campaigns: How Television Marketing Works (MNTN Research)<\/a><\/h3>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Connected TV is proving to be the savior for major streaming services as US viewers actively embrace ads in return for cheaper content.<\/p>\n","protected":false},"author":2,"featured_media":168484,"menu_order":0,"template":"","meta":{"_acf_changed":false,"_breakdance_hide_in_design_set":false,"_breakdance_tags":""},"categories":[248],"class_list":["post-131670","articles","type-articles","status-publish","has-post-thumbnail","hentry","category-amplify"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why Connected TV Is 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