Nearly Half of Streaming Users Subscribe to Ad-Supported Plans, Study Says
Ad-supported streaming subscriptions, which were barely a thing at the beginning of the decade, now make up almost half of subscription video on-demand plans in the United States. Analytics firm Antenna’s latest report on the state of the streaming market puts the number of ad-tier streaming subscriptions at 110 million (excluding Prime Video, whose default…
Ad-supported streaming subscriptions, which were barely a thing at the beginning of the decade, now make up almost half of subscription video on-demand plans in the United States.
Analytics firm Antenna’s latest report on the state of the streaming market puts the number of ad-tier streaming subscriptions at 110 million (excluding Prime Video, whose default option since early 2024 includes commercials). That represents 48 percent of all SVOD subscriptions in the U.S., up from 39 percent two years ago.
Ad-tier subscriptions are also the biggest growth area for streamers: According to Antenna’s data, ad-supported subscriptions accounted for 59 percent of gross additions in the first quarter of the year to SVOD platforms with ad options (that includes Discovery+, Disney+, Fox One, HBO Max, Hulu, Netflix, Paramount+ and Peacock). More than three fourths of net additions (new subscriptions minus cancellations) were attributed to ad tiers.
That is likely just fine with the streaming providers. As The Hollywood Reporter noted earlier this year, even though streamers charge users less per month for an ad-supported tier, the growth of SVOD advertising has led companies to subtly encourage users toward their ad tiers. It’s the same sort of dual revenue stream that made cable TV a great business in the pre-streaming era.
A healthy majority of first-time subscribers to SVOD platforms — 64 percent —in the first quarter signed up for ad-supported tiers. Another 11 percent switched from an ad-free subscription to the cheaper one that includes commercials, per Antenna. The remaining 25 percent were users who had previously canceled a service and resubscribed.
One group that’s not so quick to go for ad-supported streaming, Antenna’s findings show, are cord cutters. A majority (57 percent) of users who cancel their multi-channel service either opt for ad-free streaming or none at all in the 90 days after cutting the cord.
