CTV Report

More Than Half of Streaming Viewers Subscribe to AVOD

Abstract

  • 57% of U.S. users across major streaming services, such as Max, Netflix, Disney+, and Hulu, now subscribe to tiers with ads.
  • Approximately one in four ad-supported streaming subscribers chose this option primarily as a way to reduce expenses.
  • 37% of users say they are less inclined to cancel a subscription bundle compared to individual streaming services, versus only 19% who would be more likely to cancel.

Ad-supported streaming continues its rise as more people seek out affordable ways to watch their favorite shows and movies. According to new research from Parks Associates, 57% of U.S. streamers are now subscribed to ad-supported tiers on major platforms like Max, Netflix, Disney+, and Hulu. Many are drawn by the lower cost — roughly 25% of subscribers say they choose these plans to save money. Another quarter responded that they were incentivized to sign up for ad-supported tiers through bundles or promotional deals. This shift shows how ad-supported models are making streaming more accessible for cost-conscious viewers and helping platforms retain subscribers.

However, while ad-supported tiers offer a budget-friendly option, some users have had negative experiences, thanks to frequent and repetitive ads. Streaming platforms can help assuage those disgruntled viewers by offering more bundles: 37% of users say they’re less likely to cancel if their subscription is part of a bundle, compared to just 19% who say it increases their chances of canceling. Overall, with ad-supported streaming continuing to evolve rapidly, these affordable options are set to become an even better fit for viewers everywhere.

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