Ad-Supported Tiers Now Comprise Nearly Half of U.S. Streaming Subscriptions

The landscape of American streaming has undergone a rapid transformation, with ad-supported subscription video-on-demand (SVOD) plans now accounting for nearly half of the total market. According to a recent report from analytics firm Antenna, there are currently 110 million ad-tier subscriptions in the U.S., representing 48 percent of the total market—a significant increase from 39 percent just two years ago. This data excludes Amazon Prime Video, which transitioned to an ad-supported default model earlier this year.

Ad-supported tiers have become the primary engine for subscriber growth, capturing 59 percent of gross additions and over 75 percent of net additions for major platforms in the first quarter of 2024. Consumer behavior reflects this shift, as 64 percent of first-time subscribers opted for ad-supported plans, while 11 percent of existing users downgraded from premium, ad-free tiers to cheaper, ad-inclusive alternatives. Interestingly, the data suggests that while ad-supported tiers are popular with the general public, they are less appealing to recent cord-cutters, the majority of whom prefer ad-free experiences or no streaming service at all shortly after leaving traditional cable.

This trend signals a strategic pivot for streaming providers, who are increasingly mirroring the dual-revenue model that defined the golden age of cable television. By balancing lower monthly subscription fees with lucrative advertising revenue, platforms are effectively diversifying their income streams. As streamers continue to nudge users toward these hybrid models, the industry is moving away from the pure subscription-only era toward a more traditional, ad-subsidized ecosystem, fundamentally altering how content is monetized and consumed.