Special Report: State Of Viewership Report Reveals Trends In TV, Ads, and Audience Engagement
Selena gomez - only murders in the building / hulu
As an evolving industry, television forces us to expect the unexpected. Earlier this year, the WGA and SAG-AFTRA strikes took control of the streaming sphere with enormous strides. Coupled with a return to healthy box office to streaming distribution and rising multi-streaming bundles, this has ensured 2024 as a year for growth and development in television. The overabundance of content in the streaming space has fatigued audiences and threatens the entertainment industry. With the rise of Free Ad-Supported Television (FAST) channels — streaming services reminiscent of traditional television that adapt based on audience demands — television is quickly changing its relationship with consumers through data transparency and effective cross platform retention.
Samba TV, a technology company that focuses on data analytics and real-time audience viewership, published a report retrospectively examining 2023’s biggest trends, viewership analytics, and methods for companies to increase audience engagement. They gathered data from its Automatic Content Recognition (ACR) across tens of millions of opted-in Smart TVs. Samba TV’s integrated ACR chip is implemented across the top 24 most sold Smart TVs in over 100 countries. Its wide net captures insight and content globally, resulting in unbiased, comprehensive viewership from around the world. This report focuses on data supplemented from a nationwide survey conducted within the U.S. and weighted for age, gender, region, race/ethnicity, and income.
Biggest TV Trends
As streaming, traditional television, and emerging competitors like FAST channels battle for attention, TV consumption habits shift based on audience demand. Viewership trends from the COVID-19 pandemic have dwindled, and companies must look inwards to create meaningful connection with their audiences. In 2023, younger audiences embraced advertising-based video on demand (AVOD) and FAST channels, while linear TV dropped to an all-time low in the last quarter of the year.
One-half of adults in the U.S. have monthly cable or satellite TV subscriptions, with baby boomers carrying the brunt of linear TV at 57%. Only 47% of millennials and Gen Xers use cable, while 39% of Gen Z have a subscription. On the other hand, hours watched on over-the-top (OOT) services — video or audio services provided over the internet — saw an 18% spike in Q4 compared to Q4 in 2022. Meanwhile, linear TV hours declined during the second half of 2023 as consumers’ reliance on streaming services remained as high as ever. In contrast, all major FAST services saw increased viewership, likely because they filter out the overabundance of media found in most streaming services. Audiences continue to grow tired of endlessly scrolling, and FAST services eliminate that process by providing traditional television-like timeslots that change based on the viewing habits of the consumer. 32% of U.S. streamers are FAST subscribers and audiences are moving away from other platforms, with 32% percent of people saying they’re watching less SVOD and 23% watching less traditional TV.
Types Of TV Services U.S. Adults Are Watching
The popularity of ad-supporting tiers has increased across most SVOD platforms, especially with Disney+, Netflix, and Max. Over half of Disney+’s sign-ups and 30% of new Netflix sign-ups were on the ad-supported tier. Max began transitioning to an ad-tier based model, with Amazon Prime Video and Apple TV+ signaling some intent to move into an ad-based subscription model as well. Advertising has always thrived in television, but as mobile devices become more dominant in the advertising industry, there is immense overlap in mobile advertising and content streaming. Younger generations have shown willingness to stream TV on mobile devices far more than other generations. While only 43% of boomers stream content on mobile devices, 73% of Gen Xers, 88% of millennials, and 91% of Gen Z watch content on mobile devices. As younger generations’ spending power increases, mobile streaming is ripe with immeasurable advertising prosperity that shouldn’t be overlooked or undervalued.
Share Of Sign Up Plans By Tier
The Streaming wars
Subscription-based television is dominant among younger generations, but the constant scrolling, increasing prices, and plethora of subscription services has removed streaming’s accessibility. Streaming is no longer easy and affordable; audiences feel overwhelmed and are often drowned by the sea of content readily available. Streaming is a staple in most homes, but audiences continue to limit the services they subscribe to as prices rise. Binge culture continues to dominate the streaming sphere and audiences can’t keep up. Over 46% of U.S. streamers used two or less streaming services during the second half of 2023, an average drop of 1% across all platforms. Over 45% of baby boomers, 66% of Gen X and Gen Z, and 76% of millennials plan to cycle subscription services in the next six months. Traditional brand loyalty tactics don’t work in streaming, and advertisers will need to bundle in order to increase their chance of retaining viewers.
Year-Over-Year Viewer Churn Rate
While breakout original programming draws thousands of new viewers, those viewers don’t always stick around for the long haul. Samba reported that more than half of all total viewers only watched one of the top 50 programs across most of the top streaming platforms. Netflix was the outlier, with almost 70% of viewers sticking around and watching multiple programs within their top 50 library. Streamers looking to limit churn and retain viewers need to ensure their content library is engaging enough for their consumers. Bundling’s value may provide streamers the assistance needed to ensure consumer loyalty.
Pre-pandemic conditions have largely dissipated as consumers are out working and spending time with loved ones. They are not as home nearly as much, yet Samba found their binging habits have remained the same. Of U.S. adults, 68% identify themselves as binge-watchers, while 45% of households that watched bingeable premieres in the second half of 2023 finished the season in five days. The highest retention rate for a bulk release during the second half of 2023 was Netflix’s fifth season of Virgin River, which maintained 62% of its audience from beginning to end. Binging has become the go-to method to watch content on streamers, and SVODS need to focus on building loyalty, potentially by providing streamer bundles in order to keep costs down and engage viewers with their expansive content library.
biggest tv moments
Current data indicates audiences gravitated towards adaptations and docuseries in 2023, with blockbuster movies also becoming incredibly popular on streaming platforms. Streamers have capitalized on the slow theatrical rebound of the COVID-19 pandemic by providing blockbuster movies straight to streaming months after their initial release. The silver screen has shown a breath of life in 2023, but data shows that blockbuster movies do significantly better once they’re on streaming, with some increasing their viewership by over 500% compared to traditional VOD releases.
Netflix continues to be a powerhouse in the streaming market, accounting for eight of the 10 most streamed shows in H2 2023. Despite the actors' and writers' strikes, the platform kept its viewers by relying on storylines inspired by or adapted from novels and real-world events. Seven out of the 10 most streamed shows of H2 2023 were based on novels and real events, an increase of 133% compared to the first half of the year. Meanwhile, dramas — the most streamed genre of H1 2023 — dropped 17%, thrillers dropped 46%, and comedy dropped 55%. Streamers can’t keep hold of audiences without original content, and the historic strikes will allow for significant change for creatives throughout the entertainment industry.
Audience retention doesn’t exist in a vacuum, in fact, Samba TV found significant overlap between certain programming across different platforms. For example, audiences that enjoyed Netflix’s Who Is Erin Carter? were 2.16 times more likely to watch Paramount+’s Special Ops: Lioness. Viewers of Max’s The Gilded Age were 4.35 times more likely to watch Netflix’s The Crown, and viewers of Hulu’s Only Murderers in the Building were 2.61 times more likely to watch Max’s And Just Like That. This data reveals an interesting overlap between streamers from which they can potentially collaborate and build a shared audience upon.
Half of linear TV’s top programming were related to sports, and 76% of those were NFL games. Linear TV viewership is primarily led by ABC’s Monday Night Football and NBC’s Sunday Night Football; however, the landscape may shift with Amazon Prime’s recent purchase of Thursday Night Football. 60 Minutes was the most watched non-sports programming, in part due to its coverage of Ukraine war and the Israel and Palestine conflict. The midterms and upcoming 2024 presidential election will spike linear TV’s viewership tenfold, but recent data found that cable news viewership tends to fall significantly after election day. The first GOP debate in August retained the highest household viewership for the longest time, with an average viewing time of 78 minutes. Late night television faced the biggest drop during the writers’ strike last year, with a majority of programs’ viewership dropping by 40%. However, support for the strikes exceeded 45% among U.S. adults, and it has influenced different job sectors regarding unionization and the value of labor. Overall, 2024 marks a new beginning as television slowly transitions into a market where creatives matter just as much as profits.
Pre-Strike Vs. Post-Strike Daily Reach
linear and oot advertising
Advertising is the backbone of the television industry, and advertisers constantly look to optimize their reach. Linear TV continues to be a strong player in the advertising space, with broadcast networks comprising almost one-third of ad impressions on network television. Streaming services affiliated with these networks (like ABC and Disney+) had the highest ad impressions out of the top broadcast networks; this highlights how streamers are overtaking linear television by becoming top primetime advertisers. Despite their immense advertising budget, ads on linear TV only reach older generations as younger generations lose interest in traditional television. As the buying power of younger generations increases, advertisers need to find effective ways to tap into the potential profits of younger viewers.
One method highlighted in Samba’s report is targeting users who are multi-tasking with TV playing in the background. Three out of every four U.S. adults look at a mobile device while watching TV, and eight out of 10 adults look at their mobile device more than half the time while watching TV. Of Gen Z, 66% prefer to text, 60% of millennials use social media, and around 58% of Gen X and baby boomers check their email. When viewers have a second device out, they are more likely to get distracted and make purchases, with one in three U.S. adults shopping online while streaming TV.
Despite this, oversaturation remains a problem for advertisers. Only 92% of ads reach half of all linear TV households, while 8% of TV ads reach the bottom half of linear TV households. Of these ads, insurance advertisers remained as an advertising powerhouse in 2023, cracking the top 10 advertisers of the year. Financial advertisers also saw significant numbers last year, with their successful app-based firms gaining immense traction throughout the country. Direct-to-consumer health and beauty brands like Dove, Olay, and Crest saw a spike in impressions at 325%. With the 2024 presidential election rapidly approaching, nuanced strategies need to be implemented in order to reach Gen Z and millennials. Only 46% of these viewers saw “a lot” or “some'' political ads in the past three months. Notably, these elusive viewers are easily agitated, as 41% of undecided/dissatisfied voters say that seeing repetitive ads would likely worsen their perception of a candidate. Advertising is increasingly considered more annoying due to the excess of digital marketing, and it's essential for advertisers to manage frequency without going overboard.
Percentage of Generation That Saw "A Lot" or "Some" Political Ads In The Last Three Months
consumer snapshots
Gen Z are the hardest to reach demographic for advertisers. More than 60% of Gen Z are unreachable via traditional TV, and 47% reported to have subscription cycled in the past six months. Gen Z is a generation defined by a lack of brand loyalty, heading towards whatever peaks their interests, and advertisers don’t know how to effectively capitalize on them with precision and consistency. However, Hispanic Gen Z audiences turn towards traditional TV far more than other ethnic groups, often tuning in to Spanish-language programming like Discovery Family.
Despite this, Hispanic households have a strong preference for streaming platforms, specifically Netflix and its large Spanish-language catalog. Samba found that 53% of Hispanic people would drop down to a lower priced ad-tier if a streaming service offered it, which would greatly benefit streamers if they opted for AVOD options. Much like a majority of Gen Z, 57% of Hispanic people are unreachable via traditional TV and 77% of Hispanic households watch TV on a mobile device. Mobile devices are where many young people get their content, and advertisers need to take note of the immense power that mobile devices have on Hispanic people and younger generations.
Streaming has become a part-time babysitter for millennial parents who can’t be in two places at once. Over 73% of millennial parents subscribe to a streaming service just for their children, generally favoring Netflix’s expansive children’s content. On linear TV, millennial parents are tuning in to Disney Jr. and Disney Channel for early morning and late-night viewing. The influential role of kids programming and products in the millennial demographic could drive early brand loyalty among children.
key takeaways
The most critical factor for streaming services’ success is consumer retention. As subscription cycling threatens big streamers, services should lean into the value of bundles to host more of their viewers’ favorite programming. Younger viewers shift away from linear TV more every year, and advertisers, especially political ones, must incorporate an omni-screen approach across multiple platforms in order to effectively reach them. Cross-platform reach could reduce the repetitive ads that weaken brand perception, and linear TV advertisers should factor in multi-tasking as a part of their advertising strategy. Sports has a stronghold on linear TV, and with live sports more streamable than ever, streamers should tap into its large market of consumers. This will keep sports viewers on their platform longer, which will create brand loyalty. Lastly, docuseries and adaptations swept that latter half of 2023, and streamers should follow this data to stay ahead of trends that will likely carry into the second half of 2024.