Study: Nearly 50% of Streaming Users Opt for Ad-Supported Plans

Ad-supported streaming subscriptions have been on the rise, now making up almost half of all subscription video on-demand plans in the U.S. That’s up from 39 percent just two years ago. According to analytics firm Antenna, there are 110 million ad-tier streaming subscriptions, excluding Prime Video, which has included commercials since early 2024.

Growth in ad-tier subscriptions is outpacing other subscription options, with ad-supported subscriptions accounting for 59 percent of gross additions in the first quarter of the year. In fact, more than three fourths of new subscribers are opting for ad-supported tiers.

Streaming providers seem to be embracing this trend, as it presents a dual revenue stream similar to the cable TV era. Even though ad-supported tiers come at a lower cost for users, the growth of SVOD advertising is prompting companies to steer users towards these options.

In the first quarter, 64 percent of first-time SVOD subscribers opted for ad-supported plans, while another 11 percent switched from ad-free to ad-supported subscriptions for the cost benefit.

Interestingly, cord cutters are less likely to choose ad-supported streaming, with 57 percent of ex-cable users either opting for ad-free streaming or no streaming service at all within 90 days of cutting the cord.

These findings shed light on changing consumer preferences in the streaming landscape and how providers are adapting to meet their needs.