Premium Streamers Provide Best 'Ad Experience,' MVPDs Have the Worst: Study

• by Wayne Friedman , Staff Writer, July 31, 2024

With the rise of more advertising-supported platforms across the entire connected TV ecosystem, consumers are increasingly identifying advertising options at premium streaming services as platforms that provide the best “ad experience.”

A new Hub Research Entertainment survey finds 53% of respondents either view advertising video-on-demand services (AVOD) as having an ad experience that is “a lot better” or “a little better.”

More traditional pay TV services -- virtual multichannel video program distributors (vMVPD) -- come in at 42%, while FAST platforms (Free Ad-Supported Streaming TV) are at 39%. 

Older pay TV services -- cable, satellite, or telco-delivered (MVPD) -- come in at 25%.

At the same time, while AVOD seems to have a somewhat better rating for viewers, 45% say there is “no difference” between the ad experience for these services and others, compared to vMVPD at 56%; FAST services at 57%; and MVPD at 72%.

The research also points out that although the majority of major premium streaming services have launched ad-supported versions of their ad-free subscription products --- especially from legacy TV-network-based media companies -- a large percentage of consumers remain unaware of these options.

The highest awareness is with Walt Disney’s Hulu (65%), followed by Amazon Prime Video at 55%; Netflix (54%); Peacock (54%); Paramount+ (44%); and Disney+ (41%). Farther down the list are Max (34%), Apple TV+ (24%) and discovery+ (24%).

The most recent entry of an ad-supported version -- Amazon Prime Video --  has seen dramatic results. Respondents say 58% are using the Prime Video ad-supported option as of June 2024. It was at 84% in December 2023. Prime Video started up its ad option in January of this year.

Overall 66% of TV viewers say they would rather watch with ads to save money -- this is up from 58% three years ago.

Hub's findings come from a survey conducted with 3,000 U.S. consumers ages 14-74, who watch at least 1 hour of TV a week.