BusinessWire
As economic uncertainty shapes consumer behavior, LG Ad Solutions conducted a U.S.-based survey to uncover how inflation and rising out-of-home entertainment costs are influencing video streaming habits. The findings reveal a significant pivot toward Connected TV (CTV) and FAST platforms, as consumers seek cost-effective ways to stay entertained at home.
Findings and Insights
- Stay-At-Home Entertainment Rises
- 59% of consumers are more likely to stay home and increase streaming if dining out, travel, and other out-of-home entertainment become more expensive.
- This shift presents a significant opportunity for advertisers to reach viewers on CTV and cross-screen devices.
- Live Events Are Going Virtual
- 66% of respondents plan to stream more live events (e.g., sports, concerts) at home rather than attend in person to save money.
- This trend supports the growing importance of real-time, immersive ad experiences on streaming platforms.
- FAST Platforms Gaining Ground
- 68% of respondents have increased or plan to increase usage of Free Ad-Supported Streaming TV (FAST).
- Meanwhile, 58% plan to cut back on paid SVOD (subscription video on demand) services.
- Cost-conscious consumers are favoring ad-supported content over subscription fees.
- What Drives Subscription Choices?
- Top reason for canceling a service: Price (70%)
- Followed by:
- Poor content library (38%)
- Too many existing subscriptions (30%)
- Receptiveness to Ad-Supported Offers
- Over 70% of respondents are open to CTV ads that offer product discounts or vouchers, indicating a preference for value-driven advertising.
- This marks a shift in consumer acceptance of advertising as part of the value exchange in streaming.
- Streaming’s Role in Modern Culture
- LG Ad Solutions CMO Tony Marlow emphasized that CTV has become a “front row seat to culture,” particularly as live and exclusive events are increasingly delivered digitally.
- This transformation gives brands real-time access to highly engaged, stay-at-home audiences.
As consumers adjust to economic pressures, their video streaming habits are evolving toward cost-efficient, ad-supported experiences. With the expansion of FAST channels, increased at-home live event viewership, and an openness to value-based CTV advertising, brands have a critical window to engage audiences where they’re most active and cost-aware. LG Ad Solutions’ findings affirm that CTV is not just growing—it’s reshaping how consumers experience entertainment and how brands must adapt to meet them there.
