Published on 2023-06-13
Roku begin from sports
Brands that plan and deliver advertising on OTT platforms are considered five times more modern and five times more innovative compared to those that promote themselves in non-on-demand environments.
This emerges from the new global report by Samsung Ads titled “Is TV just TV?”. These figures rise to eight and six times, respectively, for participants aged 18 to 34.
Survey participants also stated that they perceive brands advertising on streaming platforms as three times more relevant, premium, and unique compared to those seen in other contexts.
For the younger demographic, aged 18 to 34, this perception is even more pronounced, with an increase of over five times.
Conducted in collaboration with research company Verve, the study compares key markets in Europe and the Asia-Pacific region to better understand the latest insights and habits related to television viewing. Among these, it explores the importance of quality content, preferences for different platform types, and methods of discovering new content.
Improvement of content quality on free streaming services
Almost two-thirds (64%) of survey participants agree that the quality of content on free streaming services is improving, with 78% of viewers accessing both FAST/AVOD (Free Ad-Supported Streaming TV) and SVOD (Subscription Video-On-Demand) services.
Among viewers from all countries included in the survey, Spanish viewers show the highest appreciation for the qualitative improvement of free on-demand content, with 70% expressing this preference, followed by the United Kingdom (64%) and Germany (63%).
This change in perception could be attributed to greater attention and an overall increase in content investment by these services.
According to a recent report by Digital TV Research, global revenues for FAST series and film streaming will reach $18 billion by 2028, tripling from $6 billion in 2022, with a growing portion of these investments coming from Europe and the Asia-Pacific region.
Growth
According to research participants, subscription-based (SVOD) and free streaming (FAST/AVOD) consumption is expected to increase more than any other channel or service in the next 12 months, with respective growth rates of +45% and +30%. This suggests that despite declines in subscriber numbers reported in various studies, the time spent on these platforms will increase.
Spain is expected to see the greatest increase in subscriptions (53%) and free streaming (42%) over the next 12 months. The United Kingdom will also experience significant increases, with 39% of TV viewers planning to watch more SVOD content and 26% consuming more FAST/AVOD content.
Substantial growth in SVOD is also expected in Germany (45%) and Australia (44%), while linear TV is predicted to face its largest audience decline across all markets (26%).
Smart TVs: A key factor for streaming growth
The capabilities of Smart TVs are a crucial factor in streaming development, with screen size and sound quality among the main aspects influencing TV purchasing decisions. However, the ease of access to video streaming apps is considered the most important Smart TV feature by 39% of respondents.
Additionally, almost a quarter (23%) of viewers say that when they turn on their TV, they go directly to their favorite streaming service — almost double the number (12%) who say they tune in to their preferred channel.
Content prevails over format
The reasons why viewers choose linear TV over on-demand, or vice versa, are not clear-cut and are often driven by content rather than format.
60% of respondents use streaming services when a highly anticipated program is scheduled, while 55% tune in to traditional TV for the same reason.
Similarly, one-third (36%) is equally happy to immerse themselves in regular TV or on-demand services when seeking inspiration.
Although more choice may seem positive, it often leads to confusion and frustration for consumers. 65% admit to feeling these emotions within 15 minutes if they cannot find something to watch.
Among the various countries, the "least patient" award goes to the United Kingdom, with 43% of British viewers feeling discouraged and dissatisfied after just a few minutes. Australians rank second (37%).
“It is proven that content, rather than the platform, plays a significant role in the viewer’s final decision because television is simply and only television in their eyes,” comments Alex Hole, Vice President of Samsung Ads Europe.
It’s no surprise, then, that more than half (55%) of viewers are very likely to consult personalized recommendations when searching for content.
However, it is very interesting to see how the perception of ad-supported streaming has grown, consolidating its role in the TV experience.