Maria Rua Aguete
Viewer behaviour is moving away from the previous practice of subscription stacking in favour of a more focussed approach.
The number of VOD subscriptions per household in the United States was approaching 3.5 as recently as November 2023, but Omdia research has found the number had fallen more than 10% to under three services by November 2023.
“After over half a decade of steady growth, we’re observing a shift in how paid video services are consumed. The traditional model of stacking multiple paid services is losing ground,” explained , Omdia Senior Research Director Maria Rua Aguete. “This is partly driven by the increasing popularity of free ad-supported television (FAST) channels, which are becoming a preferred choice for supplementary viewing.”
FAST has remained on track to become a prominent service in the United States, with weekly users of these channels representing 46% of total video users. Brazil has also seen a dramatic rise in FAST viewership, with weekly users now accounting for 36% of the video audience, a 4.5-fold increase from 2020.
The UK, another key player in the FAST market, has seen a surge in FAST viewers, now representing 21% of total video users.
“The FAST channel market continues to witness strong growth in the UK, Canada, and Brazil, with revenues projected to reach $8 billion by 2024. This poses both opportunities and challenges for service providers as they adapt to the changing landscape to keep up with evolving viewer demands,” concludes Rua Aguete.
