Free Streaming Is Winning: 70% of Viewers Now Use FAST and AVOD Services, According to New TiVo Study

Why It Matters

The data signals a shift toward free, ad‑supported streaming as the growth engine for the video market, forcing platforms and advertisers to prioritize discovery and curation. Sports fragmentation and subscription overload create new challenges for monetization and user retention.

Key Takeaways

• 70% of U.S. viewers now use AVOD or FAST services.
• Average household spends $161 monthly on video entertainment.
• Sports fans need 2.7 streaming services to follow favorite teams.
• 40% of viewers browse two to three apps before watching.

Pulse Analysis

Free, ad‑supported streaming has become the dominant growth vector in a crowded U.S. video landscape. TiVo’s latest findings reveal that 70% of consumers now rely on AVOD or FAST platforms such as Tubi, Roku Channel, and Pluto TV, with 66% designating FAST as their primary live‑TV source. This surge reflects a broader consumer desire to offset subscription costs while still accessing a wide content library, prompting advertisers to shift budgets toward inventory that reaches these high‑engagement, cost‑conscious audiences.

Despite the proliferation of services, households are experiencing subscription fatigue. The average family now subscribes to 6.7 paid and 3.6 free video services, spending $161 per month and watching more than five hours of video each day. While 35% regularly evaluate their entertainment spend, 65% still view video as a high‑priority expense, underscoring the resilience of the sector even amid economic pressure. For platforms, simplifying discovery—through better recommendation engines or AI tools—has become essential to retain viewers and justify premium pricing.

Sports streaming illustrates the fragmentation challenge, with fans needing an average of 2.7 services to follow their teams and 69% reporting that watching sports has become harder. This complexity drives viewers to skip games or revert to traditional pay‑TV, creating a strategic dilemma for leagues and broadcasters. As AI‑driven search tools begin to appear, they may alleviate discovery pain points, but the industry’s next frontier will be balancing a rich, multi‑service ecosystem with seamless, user‑friendly experiences that keep audiences engaged across both paid and free tiers.