Julia Stoll
Research expert covering TV and video media
While watching traditional television is still very popular among Canadians, video streaming has been rising in popularity in the last few years. A survey released in May 2023 found that a larger share of Canadian respondents preferred video streaming services, such as Netflix and Amazon Prime Video, over live TV broadcasts. Since the onset of the coronavirus pandemic, more viewers than ever pivot towards streaming services as audiences started to look for broader content catalogs. While the share of U.S. and Canadian consumers interested in cutting the cord reached its highest figure in the fourth quarter of 2022, the number of digital video viewers in Canada is expected to further grow to over 30 million by 2026.
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.
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.
