66% of U.S. TV Viewers Prefer Ad-Supported Streaming Services

Streaming platforms are leaning into ad-supported models, and it looks like those moves are paying off. According to new research, two-thirds of U.S. viewers now prefer ad-supported streaming over ad-free options — especially during live content like sporting events. Younger audiences (ages 16 to 34) in particular are driving this trend, with 69% showing a higher tolerance for commercials during live programming. Part of the draw for ad-supported content is more balance between content and ads: free ad-supported streaming TV (FAST) services average just 9 minutes of ads per hour, significantly less than traditional TV’s 15-minute ad load.

Even big players like Netflix are seeing massive wins with their ad tiers, with the service attracting 46.1 million U.S. subscribers and fueling a 43% growth in ad revenue this year. Live content remains a major draw for streaming services, with platforms like Amazon and YouTube investing heavily in sports and other live events to create premium ad opportunities. However, while viewers are open to ads, they expect a seamless experience — nearly 80% of streamers have expressed frustration with delays or glitches during ad breaks. As competition heats up, platforms are focusing on lighter ad loads, personalized placements, and smoother technology to keep audiences engaged.

Connected TV in the News

Higher, Further, FAST-Er: CTV Will Keep On Growing in 2025
AdExchanger
CTV experts say they are “bullish” on the channel, and believe that 2024’s biggest CTV trends will continue well into 2025.

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2024 Streaming: Sharp 18% Drop in National TV Marketing Ads
MediaPost
Streaming platforms dramatically dropped national TV advertising spend/media value in 2024 versus the year before to $571 million.