Advanced Television

Research: Ad-free SVoDs risk £100m revenue loss

June 4, 2020

Seven out of ten Brits aren’t prepared to spend more than £20 (€22.50) per month on streaming services, a drop of £5 compared to September 2019 when the same proportion of the population was willing to spend up to £25, according to research by advertising technology company The Trade Desk. This could mean a reduction of up to £97.3 million potentially available to subscription-funded services, from the UK population overall.

The research also reveals that a third of Brits (33 per cent) now say that £10 is the maximum they’d be willing to spend per month on streaming services – up from 26 per cent who cited the same figure in September last year. Over the same timeframe, the number of people prepared to spend over £25 per month has more than halved.

But while 60 per cent of Brits report that they believe streaming services are too expensive, appetite for new TV content remains high with well over half (58 per cent) of Brits signing up to a new streaming service since the Covid-19 lockdown began. As a result, acceptance of ads has grown, with 70 per cent reporting preferring to see more relevant advertising than pay more to watch TV. Additionally, 84 per cent reported being open to adverts if it means they can watch an episode of their favourite show for free, without interruption, afterwards. And nearly half of those surveyed (47 per cent) would altogether prefer to watch streamed content using a free, or cheaper, service supported by ads.

“As Covid-19 has driven the nation into lockdown, Brits have turned to streaming services to fill their new-found free time,” notes Dave Castell, General Manager of Inventory and Partnerships at The Trade Desk. “It’s not surprising – whether it’s heading to outer space with Disney’s Star Wars spin-off or exploring new shores on Pluto TV’s Travel channel, there’s a multitude of great content to provide a welcome distraction from the outside world. But while people want access to a variety of premium content, there’s a limit on how much they’re willing to pay. And with purse strings tightening, it’s time to think about how ad-funded models could benefit consumers, as well as supporting multiple streaming services.”

“This data reveals a clear willingness amongst UK consumers to accept advertising if it means accessing their favourite shows for cheaper prices, or for free, but it’s vital that it’s done right,” he stresses. “Ads must be creative, relevant and appropriately timed to keep consumers content. In doing so, streaming platforms can generate the revenue they need to keep creating the engaging, entertaining TV that Brits clearly crave, without charging the bill back to them.”


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