Nearly half of all American households now use at least one free, ad-supported streaming television (FAST) service on a regular basis, according to new data released Wednesday by Parks Associates.
The number of Americans using FAST services rose from 27 percent during the first quarter (Q1) of 2022 to 45 percent during the first three months of this year, Parks Associates reported, based on its own internal data.
While the adoption of FAST services has grown rapidly over the past three years, there are signs that the trend is starting to level off: The number of households reporting their use of free streaming TV actually dropped 2 percentage points when compared to six months earlier, according to an evaluation of Parks Associates data by The Desk.
Still, the data indicates something that industry insiders have long known to be true: Streamers are not just incorporating more free options into their diets, they’re sticking around to watch shows and movies without shelling out anything more than the cost of their broadband Internet connection.
With FAST here to stay, Parks Associate President and Chief Marketing Officer Elizabeth Parks said the challenge for the connected TV (CTV) industry now is figuring out the best ways to solve challenges in monetization, distribution and search and discovery over the long term.
“Traditional and digital distribution are converging, with ISPs and connected TV (CTV) platforms emerging as gatekeepers. Consumers don’t see categories anymore — they just want frictionless access,” Parks said in a statement. “While the early years of streaming were focused on subscriber growth, advertising is becoming the primary growth engine for the video industry.”
The data was released ahead of Parks Associates’ “Future of Video: Business of Streaming” event, which is taking place next month in Marina del Rey, California.
Free streaming services have helped the connected TV sector chip away at traditional broadcast and cable television’s lead in terms of time spent with TV in American homes over the past few years.
The Roku Channel is the leading FAST service in the United States, with nearly 3 percent of all time spent on TV in August, according to data from Nielsen’s monthly “The Gauge” report. Fox-owned Tubi is not too far behind with 2.2 percent of time spent with TV, while Paramount’s paid and free streaming services grabbed another 2 percent share in August, Nielsen said.
An updated report is expected within the next few days, but the FAST trends reflected in Nielsen’s monthly reports has been consistent over the past few months.
