Study Reveals Nearly Half of Streaming Users Choose Ad-Supported Plans

It’s no surprise that streaming has become a huge part of our entertainment landscape in the past few years. What might be surprising, though, is just how many of us are opting for ad-supported streaming plans. According to a recent report from analytics firm Antenna, nearly half of all subscription video on-demand plans in the U.S. include ads.

Antenna’s data shows that there are about 110 million ad-supported streaming subscriptions in the U.S., making up 48 percent of all SVOD subscriptions – that’s a big jump from 39 percent just two years ago. And it’s not just a small trend – ad-supported subscriptions are actually the fastest-growing area for streamers.

In fact, Antenna found that 59 percent of new subscribers to SVOD platforms with ad options signed up for ad-supported plans in the first quarter of the year. And more than three-quarters of net additions (that’s new subscriptions minus cancellations) were for ad tiers. It seems like streaming providers are pretty happy about this shift, too. Despite charging slightly less for ad-supported plans, the growth of SVOD advertising has companies nudging users towards those ad tiers, creating a nice dual revenue stream similar to the good old cable TV days.

But who exactly is signing up for these ad-supported plans? Well, the majority of first-time subscribers to SVOD platforms – about 64 percent – went for those ad-supported tiers in the first quarter. And interestingly, 11 percent of users actually switched from ad-free to ad-supported subscriptions to save a few bucks. The remaining 25 percent were folks who had previously canceled a service and came back.

It’s not all ad-supported streaming love, though. Antenna’s study found that cord-cutters tend to steer clear of ad-supported streaming, with 57 percent opting for ad-free options or nothing at all within 90 days of ditching their multi-channel service.

The streaming landscape is definitely evolving, and it’s pretty fascinating to see how different subscription options are shaping up. Whether you’re a die-hard ad-hater or don’t mind sitting through a few commercials for a cheaper plan, there’s no shortage of choices out there in the streaming world.