The top 6 free ad-supported streaming services, as the value of some AVOD and FAST brands surge

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“There’s a conventional wisdom out there in some corners that people are using AVODs because they can’t or won’t afford subscription services, but that isn’t true,” said Mike Bloxham, an executive VP at research and strategy firm Magid.

He pointed to recent Magid data that found 81% of people who pay for three or more subscription services also use an AVOD service.

“They have the appetite for three-plus services,” he said. “They want content. They look for it where they can find it, and ads are not a barrier.”

In another finding from the Magid study, 42% of users said they prefer free content with ads, while 43% prefer paying for a monthly subscription with no ads. (The rest of the respondents either had no preference or preferred to pay per show.)

“The extent to which AVOD services are now coming through with good offerings and great content … that’s what people are leaning into, especially if it’s free,” Bloxham said.