Ad-supported streaming subscriptions, which barely existed at the beginning of the decade, now make up nearly half of video-on-demand subscription plans in the United States.
Analytics firm Antenna’s latest report on the state of the streaming market puts the number of ad-level streaming subscriptions at 110 million (excluding Prime Video, whose default option since early 2024 has included commercials). This represents 48% of all SVOD subscriptions in the US, compared to 39% two years ago.
Ad-tier subscriptions are also the biggest growth area for streaming providers: According to Antenna data, ad-supported subscriptions accounted for 59 percent of all Q1 additions to SVOD platforms with ad options (which include Discovery+, Disney+, Fox One, HBO Max, Hulu, Netflix, Paramount+, and Peacock). More than three-quarters of net additions (new signups minus cancellations) were attributed to ad layers.
This will probably work well with streaming providers. like Hollywood Reporter It was noted earlier this year that although streamers charge users less per month for the ad-supported tier, the growth of SVOD advertising has led companies to subtly encourage users on their ad tiers. It’s the same kind of dual revenue stream that made cable TV a great business in the pre-streaming era.
A large majority of first-time subscribers to SVOD platforms — 64 percent — in the first quarter signed up for ad-supported tiers. Another 11% switched from an ad-free subscription to a cheaper subscription that included commercials for each antenna. The remaining 25 percent were users who had previously canceled and resubscribed to the service.
Antenna’s findings show that one group that is not rushing to adopt ad-supported streaming is cord cutters. The majority (57 percent) of users who cancel multichannel service either choose ad-free streaming or choose nothing at all within 90 days after cutting off service.
