Who is streaming what?
Even though traditional TV consumption varies by age and cord-cutting is more common among young audiences, older generations have also been joining the streaming trend recently, albeit at a slower pace. A survey from May 2023, for example, found that the penetration rate of ad-supported video-on-demand (AVOD) overall increased among Canadians aged 18 years and older, but even faster in the youngest age group surveyed. The same can be observed with video streaming subscribers – over 90 percent of 18 to-34-year-olds used subscription video-on-demand (SVOD) services as of October 2022, compared with around two in three people aged 65 years and older.SVOD still generates the most revenue in Canada compared with other over-the-top streaming options. Like in the U.S. market, there is nevertheless also a noticeable trend towards ad-supported content. With subscription-based services becoming more cost-intensive, and the widespread economic pressures, consumers are looking to save money and cancel their subscriptions. As of October 2022, one in five connected TV viewers planned to remove a subscription service, while 13 percent expected to add more free ad-supported services in the next 12 months.
A competitive market
With the growing importance of the ad-supported streaming market in Canada, the battle to win and retain video streaming viewers is intensifying. In addition to the most viewed global SVOD players – Netflix, Disney+, and Amazon Prime Video – as well as Bell Media’s platform Crave, consumers can also choose from several AVOD services. YouTube was the most popular advertising-based platform in the country as of April 2023, followed by Canada’s networks Global News, CTV, and GEM – a ranking that highlights the increasing influence of non-U.S.-based services.
