Streaming viewership has seen significant shifts recently, reflecting trends and changes within the industry. Both Connected TV (CTV) platforms and streaming giants like Netflix are working to adapt, engage, and entice users as viewership habits evolve.
A comprehensive study titled "The CTV Trends Report 2024," released by Wurl, has highlighted positive trends for CTV. The report shows viewership numbers climbing back to near pandemic-era levels, with average daily hours of CTV viewing increasing by 5% year over year. Session lengths have also jumped, with viewers spending 7% more time watching their favorite shows on CTV platforms. This surge indicates not only more viewers tuning in but also loyalty to specific content, enjoying longer viewing sessions.
During the pandemic, viewers turned to various streaming services as they sought escape and entertainment. The recent data suggests this trend persists, as average viewing hours and session lengths are nearing the highs recorded during the pandemic. Factors contributing to this renewals may include significant events such as the upcoming Paris Olympics and major U.S. elections, which will likely dominate viewing time.
Interestingly, the study noted the average session length began to increase earlier than total viewing hours, peaking back in the second quarter of 2022. The uptick suggests overall viewer loyalty is growing, with various competing services vying for attention as new channels and platforms enter the scene.
Despite these positive changes, CTV platforms still face challenges, particularly when it relates to churn rates—the percentage of subscribers who cancel their services. The churn rate has remained relatively consistent over the last three years, indicating established viewing habits even as many viewers experiment with different services.
Another aspect analyzed was the fill rates for advertisements, particularly relevant as CTV continues to evolve and adapt to the advertising market. Advertisers are hoping to capitalize on higher viewership; yet, the first half of 2024 saw ad fill rates dip compared to 2023, though they appear to be climbing back up as the holiday season approaches.
Meanwhile, Netflix is also making headlines with its co-CEO Ted Sarandos advocating for more transparency among streaming platforms concerning viewership data. He believes releasing such information would not only benefit the company but also help writers, actors, and agents gauge performance metrics more effectively. Sarandos stated, “That is kind of an answer to the folks who were saying, ‘Hey, I don’t really get to see how my stuff does.’ And I agree, it was unfair.”
On Thursday, Netflix plans to release its viewership figures for top shows, alongside its biannual data dump. Earlier reports indicate nearly 94 billion hours were spent watching Netflix within the first half of the year, spiking interest among fans about what’s hot and what’s not across the streaming platform.
Sarandos also addressed Netflix's future direction, emphasizing the transition away from quarterly subscriber figures toward focusing more on engagement metrics come 2025. While it will still provide subscriber growth milestones, the company believes engagement could serve as a pivotal metric moving forward, especially with its growing portfolio of live programming.
According to the Nielsen Gauge report, Netflix secured around 7.9% market share for television viewing, slightly decreasing over the previous month, whereas YouTube continues to lead with about 10.6%. Netflix is targeting the 80% of screen time it hasn’t yet captured. To do this, it plans to ramp up game offerings and premiere new titles, such as multiplayer games based on the popular "Squid Game" franchise.
This dual focus on transparency and adaptation to viewer habits highlights the competitive nature of the streaming industry. With Netflix and CTV platforms both seeking to engage viewers more effectively, it’s clear they’re aware of the need for methods to draw audiences back and keep them entertained.
Consequently, as streaming platforms continue to innovate and share data, the industry is set to witness changes not only in the content available but also how it is consumed and evaluated. Increasing transparency among platforms could mean organic evolution for the streaming industry, benefiting involved creators and viewers alike as it marches toward the future.
