Streaming TV has reached critical mass in Canada, with the audience for streaming outstripping traditional TV, according to new research from Magnite.

Magnite worked with polling firm Harris to survey 1,011 Canadians and 3,109 Americans, all of whom watch more than seven hours of television a week.

The report found that more Canadians are watching streaming TV (74%) than paid traditional TV (51%) and broadcast (32%). According to the research, two-thirds of Canadian streamers (66%) currently watch ad-supported content, which matches the number of viewers watching ad-free content. 

While the research shows parity between ad-supported and ad-free TV, Magnite believes the scale will likely tilt toward ad-supported models as consumers re-evaluate their subscription expenditures. A third of Canadian streamers (39%) are likely to cancel or downgrade the subscriptions they currently pay for and 74% are likely to use a new ad-based service in exchange for a reduced cost fee. Binge watching is popular with Canadians, with 45% of streamers saying they binge-watch their favorite shows, and 30% are appointment viewers, tuning in each week when new episodes are released.

Canadian consumers are highly engaged with streaming programming, in line with U.S. consumer behaviour. Streamers tune in to streaming platforms for larger, concentrated blocks of time as compared to social media channels, where most Canadians (87%) engage with short-form videos lasting a few minutes or less.

In addition, Magnite says Canadians have a lack of trust in social media channels as a source of general news and information. This affects their perception of ads on social channels with 48% of Canadian consumer saying they trust social ads compared to 80% who trust TV advertising.

In separate analysis based on Vividata research into connected TV penetration, Samsung Ads believes because of these viewing behaviors, advertisers are missing mostly streaming households. With households streaming on Samsung devices watching just six minutes of linear TV per day, or about 42 minutes each week, it is difficult for linear TV advertisers to reach them. To achieve a balance in GRPs between connected and linear homes, Samsung suggests that 20% of Canadian TV budgets should be allocated to connect TV. As viewing shifts to streaming, new advertising opportunities are arising in ad-supported video on demand, with a jump of 23% in SVOD ad opportunities between Q4 2021 and 2022, and a 31% increase in AVOD opportunities.