Streaming-Video Subscribers Are Leaning Into Ad-Supported Plans

More people are paying to watch ads while they stream video, according to new research. 

The share of premium streaming video on-demand subscriptions that include ads rose in the first quarter to reach 46%, according to a report released Tuesday by consumer data research firm Antenna. (That figure doesn’t include free plans and a few other arrangements.) Ad-supported subscriptions rose by nearly a third, the report said, while ad-free ones ticked lower. 

Ad-supported tiers represented nearly 60% of gross additions in the first quarter, Antenna said, dipping slightly year-over-year in part due to the 2024 streaming of an NFL playoff game on Comcast-owned (CMCSA) Peacock. 

Plans with ads tend to be less expensive than ad-free ones, making them attractive to cost-conscious consumers as subscription prices rise, while setting up the streaming companies with another revenue stream. (Netflix (NFLX) said in April that the company expected a “rough doubling” of ad revenue this year.) But they also tend to have higher subscriber churn, according to Antenna.