Aussies choosing ad-supported streaming to cut costs
As consumers seek to reduce their entertainment expenses, ad-supported video on demand (AVOD) services are becoming increasingly popular.
Data released by global market research company Kantar reveals that the number of Australians subscribing to AVOD services nearly doubled compared to the same quarter in 2023.
Opting for ad-supported streaming plans can substantially reduce the cost compared to ad-free options.
A basic Netflix plan with ads costs $7.99 per month, whereas a basic plan without ads jumps to $18.99 per month – roughly a 137% increase. Similarly, a basic Binge subscription with ads is $10 per month but rises by an additional $8 per month for ad-free, an 80% increase.
The data showed the number of consumers with AVOD services rose from 962,510 in the June quarter of 2023 to 1.8 million in the June quarter of this year.
The findings revealed that Australian consumers (20.6%) are also saving money by bundling their streaming services.
The most popular streaming bundle deals include offerings by Apple TV+, with 43.6% of their customers signing up, followed by BritBox at 39.1%, YouTube Premium at 33.9%, Binge at 30.9% and Paramount+ at 29.6%.
Kantar consumer director Andrew Northedge said there is an increasing amount of bundle options being offered to customers to get them to sign up for discounted streaming services.
“There’s so many options out there now compared to a year ago,” he said.
“Hubbl is obviously the big one. Bundling is occurring more when people sign up for a new service – often the catch is an extended free trial with a telco, which can be a hook.”
Northedge said some bundle deals were wrapped in with other products and services, including smart TVs and music streaming platforms.
For example, Hubbl, part of the Foxtel Group, allows customers to access over a dozen streaming apps on one interface. Telstra customers can also bundle various streaming services, such as Telstra TV Box Office, Binge and Foxtel, with their mobile or broadband plans.
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