AVOD Is Starting to Take a Bite Out of Subscription Services Like Netflix and Disney's Hulu
Don't misread the message. Ad-free streaming services like Netflix (NASDAQ: NFLX) and Disney+ from Walt Disney (NYSE: DIS) aren't about to be toppled. It would be naive, however, to ignore the rapidly growing free, ad-supported sliver of the streaming market. Given enough time, low-cost and no-cost alternatives like Comcast's (NASDAQ: CMCSA) Peacock or Fox Corporation's (NASDAQ: FOX) (NASDAQ: FOXA) ad-supported platform Tubi are going to make waves for the more established ad-free services.
That's the gist of a recent survey performed by OnePoll, anyway, though it jibes with another observation recently made by television viewership monitor Nielsen (NYSE: NLSN).
To say the past few months have been disruptive ones would be an understatement. Yes, the coronavirus pandemic has forced the world to adapt, and in many cases forced consumers to trim budgets. But 2020 has also seen a sweeping evolution of the streaming video market. Subscription-based services still dominate the market. But the rapid growth of ad-supported alternatives like Peacock, Tubi, and Pluto TV from ViacomCBS (NASDAQ: VIAC) (NASDAQ: VIAC.A) has started to turn heads. OnePoll notes that since COVID-19 has become a part of our daily existence, around one in four U.S. consumers under the age of 34 has canceled a paid streaming service because they found a free, ad-supported alternative.
Source Fool.com
