Linear TV: The Go-To for Ad-Supported Viewing (Ad Platform Only Pie)

Linear TV: The Go-To for Ad-Supported Viewing (Ad Platform Only Pie)

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There continues to be much discussion of streaming’s share of total viewing, however, there is still far less discussion about the share of total viewing that has advertising. Advertisers cannot reach many of these streaming viewers because some platforms, such as Amazon Prime Video and Apple TV+, are advertising-free. Other streaming platforms, such as Hulu, Max (formerly HBO Max), and now Netflix and Disney+, offer tiered subscriptions, and the viewer may or may not see ads depending on which tier they pay for.

In fact, in August 2023, the TVB issued a press release on the results of Nielsen’s Gauge report: “The Gauge Report provides a monthly view of the content and programming that audiences are watching on a television screen, including broadcast, cable and streaming platforms. However, The Gauge doesn’t provide the key data needed by advertisers. Specifically, The Gauge’s streaming numbers include ALL SVOD subscribers – those who do and don’t receive ads – and for most SVOD platforms subscribers viewing ads are a far smaller segment of the overall total viewing,” said Steve Lanzano, TVB President and CEO. According to the 2023 SVOD Study, a brand-new 4,000-respondent survey implemented by the well-regarded research company GfK and commissioned by TVB, more than 70% of Netflix, Disney+, and Max subscribers do not see advertising. In the press release, Lanzano continued, “So, while streaming TV viewing is prevalent, an overwhelming majority of SVOD streaming viewers don’t see commercials. Advertisers need these facts when considering streaming media investments.” 

TVB continues to analyze linear and streaming viewing using Nielsen’s total use of television and streaming platform ratings, and the results showcase the value linear TV represents to advertisers.

The following key points highlight the strength of linear television to advertisers

  • For November 2023, when looking at the Adults 18+ total viewing day (The Gauge report Nielsen continues to share is for people 2+), linear television represents 58% of viewing, compared to streaming TV’s 40%.
Source: Nielsen NPOWER November 2023 Persons 18+ Live+7. Total Day of All Viewing Platforms: Percent of Broadcast, Cable, and Streaming to TUT Levels. MVPD/vMVPD category is included in Linear bucket. From Nielsen’s Gauge FAQ’s, “Other” includes all other TV. This primarily includes all other tuning (unmeasured sources), unmeasured video on demand (VOD), streaming through a cable set top box, gaming, and other device (DVD playback) use. Because streaming via cable set top boxes does not credit respective streaming distributors, these are included in the “other” category.
  • Streaming viewing may be 40% of the total viewing day, but that does not translate to ad-supported viewing. Many SVOD platforms have different tiers, some with ads and some without; Nielsen shows one number for these platforms e.g., Hulu total viewing, versus Hulu with ads and Hulu without ads. As a result, advertisers do not know the number of subscribers viewing ads available to them.
Source: Nielsen NPOWER November 2023 Persons 18+ Live+7. Total Day of Streaming Platforms: Percent of Streaming platforms to Total Streaming. Nielsen Streaming Platform Ratings (With and Without Ads: Hulu, Paramount+, Discovery+, Max, Peacock, Netflix, Disney+; No Advertising: Amazon, Apple TV+). From Nielsen’s Gauge FAQ’s, streaming platforms listed as “other streaming” includes any high-bandwidth video streaming on television that is not individually broken out. 
 
  • Recognizing this, the TVB commissioned GfK to do the 2023 SVOD Study to examine and better understand the streaming networks that people pay to get like Netflix, Amazon, Disney+, Max, Hulu, Paramount+, Peacock, etc.
Source: GfK TVB SVOD 2023 Study. Persons 18+ TV HH. TV4a-g: What type of subscription does your household have for each of these streaming services?
  • The study showed that given a choice, more adult 18+ subscribers that are already paying for a subscription will pay more to get programming without ads on tiered SVOD platforms. Only 26% of Netflix subscribers (including multi-TV set households where 4% subscribe to both ad-supported and ad-free tiers), 54% of Discovery+ subscribers (including 8% that have both), 29% of Disney+ subscribers (including 3% that have both), 29% of Max subscribers (including 2% that have both), 61% of Hulu subscribers (including 4% that have both), 54% of Paramount+ subscribers (including 4% that have both), and 72% of Peacock subscribers (including 8% that have both), subscribe to an advertising tier.
Source: Nielsen NPOWER November 2023 Persons 18+ Live+7. Total Day of Streaming Platforms: Percent of Streaming platforms to Total Streaming. Nielsen Streaming Platform Ratings (With and Without Ads: Hulu, Paramount+, Discovery+, Max, Peacock, Netflix, Disney+; No Advertising: Amazon, Apple TV+). Percentage of subscriptions with ads: GfK TVB SVOD 2023 Study. Persons 18+ TV HH.
  • In assembling a pie that dealt only with platforms that have advertising, we used those results from the 2023 GfK TVB SVOD Study to approximate ad viewing subscribers for those services. Using those percentages, we estimated those Netflix, Discovery+, Disney+, Max, Hulu, Paramount+ and Peacock subscribers that can see ads represent only 14% of the total streaming pie. Moreover, 22% chose tiers with no advertising.
Source: Nielsen NPOWER November 2023 Persons 18+ Live+7. Total Day of Streaming Platforms: Percent of Streaming platforms to Total Streaming. Nielsen Streaming Platform Ratings (With and Without Ads: Hulu, Discovery+, HBO Max, Peacock, Netflix, Disney+; No Advertising: Amazon, Apple TV+) Based on GfK SVOD Survey that shows that 26% of Netflix subscribers, 54% of Discovery+ subscribers, 29% of Disney+ subscribers, 29% of Max subscribers, 61% of Hulu subscribers, 54% of Paramount+ subscribers and 72% of Peacock subscribers that can see ads.
Source: Nielsen NPOWER November 2023 Persons 18+ Live+7. Total Day of Streaming Platforms: Percent of Streaming platforms to Total Streaming. Nielsen Streaming Platform Ratings (With and Without Ads: Hulu, Discovery+, HBO Max, Peacock, Netflix, Disney+; No Advertising: Amazon, Apple TV+) Based on GfK SVOD Survey that shows that 26% of Netflix subscribers, 54% of Discovery+ subscribers, 29% of Disney+ subscribers, 29% of Max subscribers, 61% of Hulu subscribers, 54% of Paramount+ subscribers and 72% of Peacock subscribers that can see ads.
  • Applying these assumptions, we developed a total viewing pie of platforms/tiers that have advertising, which included linear TV, AVOD and SVOD with tiered subscriptions. The result indicated linear TV represents 77% of total day of the ad-viewing platforms, a far cry from a pie including all viewing whether advertisers can avail themselves of it or not, showing linear TV at 58%. Advertisers need to know the platforms/subscribers available to them who can view advertising, so they can make informed marketing choices.
Source: Nielsen NPOWER November 2023 Persons 18+ Live+7. Total Day of Platforms With Advertising Base: Ad-Supported Linear TV & Nielsen Streaming Platform Ratings (With and Without Ads: Hulu, Discovery+, HBO Max, Peacock, Netflix, Disney+); Based on GfK SVOD Survey that shows that 26% of Netflix subscribers, 54% of Discovery+ subscribers, 29% of Disney+ subscribers, 29% of Max subscribers, 61% of Hulu subscribers, 54% of Paramount+ subscribers, and 72% of Peacock subscribers that can see ads. MVPD/vMVPD category is included in Linear bucket.


For more information, please contact Hadassa Gerber, Chief Research Officer, TVB