Ad-supported streaming services (AVOD) are seeing adoption at a faster rate than subscription-based services (SVOD) in the United States, according to newly published research.

Comscore’s 2022 State of Streaming analysis found that there has been 29% increase in U.S. households streaming AVODs in 2022 compared to 2020 vs a 21% increase during the same period for SVODs.

1. AVOD vs Streaming.Comscore

AVOD vs Streaming, Comscore

“While both ad-supported and subscription-based streaming services are growing in the U.S., we’re seeing that consumers are being more mindful of their budgets and leaning towards ad-supported services,” said James Muldrow, vice president, product management at Comscore. “This makes sense as inflation continues to hit consumer’s wallets. The time is ripe for traditionally subscription-based streaming services like Netflix to consider launching an ad-supported tier to enhance their growth trajectory.”

Comscore’s research also found that households watched 5.4 streaming services per month as of March 2022, compared to 4.7 in March 2021.

Diverse audiences, including African American, Asian, American Indian, and Hispanic populations, are a key driver of streaming growth, now accounting for more than 40% of Wifi-enabled households watching Connected TV (CTV) in the U.S.

In terms of the streaming platforms viewing days per household, African Americans over index for Amazon, FuboTV, YouTube, and Pluto.TV while Asians over index for HBO Max, Hulu, YouTube, and Sling. Accounting for the largest segment of diverse homes that stream, the Hispanic audience over indexes for Netflix, YouTube, FuboTV, and Sling.

Smart TVs are the fastest-growing segment of streaming devices with 48% growth YOY. Samsung still dominates the Smart TV arena with 26% market share, but is down from 31% in 2021 as other players gain momentum: Alcatel/TCL now accounts for 15% and Vizio 14%.