Data from research firm Kantar has revealed that the number of Australians with advertising video-on-demand (AVOD) services has more than doubled in the last 12 months.
In the March quarter, 12.5 per cent of Aussies had AVOD services, up from 5.6 per cent in the previous year.
The number of AVOD subscribers is expected to grow further as more streamers, including Paramount+ and Amazon Prime Video, roll out ad-supported options and the cost of living continues to increase.
“Who really wants to see ads even if they are semi-personalised? It’s a pretty simple sell that you get the service cheaper if you have ads,” Kantar’s consumer director Andrew Northedge told The Australian.
“In Australia it’s at 12.5 per cent of all households (with AVOD services), in the US it’s about 50 per cent of all households, and a lot of other players there have ad tiers including HBO and Prime Video.”
Kantar’s data is based on a longitudinal study of 10,000 Australian streaming consumers. Currently, only Netflix and Foxtel-owned BINGE have ad-supported offerings with more to launch soon.
Kantar is set to release more data on the Australian streaming industry this week.
