Future of TV: Ad-Supported Streaming Landscape Explained in Detail

Ivy Liu
This week, we’re diving into the latest trends in streaming and TV for Digiday+ members. In recent studies, it’s become clear that ad-supported streaming is taking over the scene, offering a new landscape for brands and advertisers to explore.

According to Antenna’s “State of Subscriptions – Ads & Adds” report, almost half of the top-tier streaming service subscriptions include ads. This shift indicates that ad-supported streaming may soon become the norm. In fact, more and more streaming subscribers are choosing ad-supported tiers over ad-free options.

A recent study by Tivo also showed that many top streaming service subscribers are already on ad-supported tiers. Services like Peacock, Paramount+, Hulu, and Disney+ have a majority of viewers on the ad-supported plans. Even Netflix, known for its ad-free experience, has seen an increase in users opting for the ad-supported tier.

So, why the sudden shift towards ad-supported subscriptions? Price is a significant factor, but interestingly, many viewers don’t seem to mind watching ads. In fact, three-quarters of respondents in Tivo’s study said they either don’t mind or even prefer ads over paying for an ad-free experience.

However, not everyone is thrilled about the increased ads. A third of viewers find it annoying to sit through too many commercials, especially when the same ads are shown on both streaming services and social media platforms. It’s an interesting dynamic that advertisers and brands need to navigate carefully to avoid overwhelming viewers.

In the end, it’s clear that the future of TV is leaning towards ad-supported streaming. With more viewers embracing ads and subscribing to ad-supported plans, advertisers have a unique opportunity to reach their target audiences in a new and engaging way.