The popular streaming services, such as Netflix, Hulu, HBO Max, Disney Plus, and Apple TV Plus, have transformed the way we create and consume movies and shows over the past decade. However, they seem to have hit a wall, as most services are experiencing slower growth and dwindling returns on their annual content investments. This has spurred a rise in free ad-supported platforms, such as Tubi, Pluto, and The Roku Channel, which are becoming dominant players in the industry.
The future of TV lies in free, ad-supported streaming, with a focus on FAST (Free Ad-Supported Streaming Television) channels and AVOD (Advertising-Based Video On Demand) content libraries that are available anytime. With an increasing number of subscribers feeling that they pay too much for their streaming services, and canceled paid services becoming more common, free streaming offers an attractive cost-saving solution, in exchange for a few ads an hour.
Even the SVOD services are discovering the value of ads, with Netflix’s ad-supported plan generating more revenue per user than its pure subscription plans. Disney Plus, Max service and Peacock have also introduced ad-supported plans. However, totally free streaming services, such as Tubi and Pluto, have only one goal – to get viewers to watch as much content as possible. This results in a streamlined UI and a lack of login barriers, making it easier for viewers to find their desired content, and driving engagement.
Personalization is also key, with algorithms working to recommend content based on individual taste, as well as channel curation, and classic shows and movies, driving viewing time. While free streaming services do not usually generate huge hits, they provide competitive libraries of content, making them attractive to viewers looking for a wide range of options.
