Experts say that a growing appetite for ad-supported content is leading to more original content being created by free streamers.

Brands are increasingly interested in ad-supported video on demand (AVOD) as consumers continue to shift from traditional linear TV to streaming online.

Dan Zangrano, EVP, integrated investments for UM, says that AVOD opportunities are growing in Canada, thanks to connected TV. However, while consumers are increasingly accepting of ads in exchange for free content, the more prominent, established players in the streaming space remain subscription-based. Zangrano notes that the recent launch of Discovery+ provided Canadians with an option to subscribe at a higher price-point in order to be completely ad-free.

“With many Discovery+ shows owned by Canadian broadcasters and various specialty station lineups, this launch was followed closely across the industry,” he says. “It remains to be seen if any of the established SVOD streamers will deviate from their existing models to introduce an AVOD option. But it is worth noting that many new streaming offerings are launching with a [dual ad-supported and subscription] approach.”

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