Streaming platforms like Netflix, Disney+, and Amazon’s Prime Video are embracing ad-supported subscriptions, a new trend in the market, according to a recent study. This trend is gaining popularity among young consumers, as they seek to avoid TV ads seen on broadcast TV.
Recent Nielsen data shows that the consumption of streaming platforms reached record levels in July. Among the 13- to 39-year-olds, 68% of them reported using streaming platforms to avoid TV ads. However, due to the current economic conditions marked by inflation, fewer young people are paying for streaming subscriptions compared to previous years.
According to a study conducted by YPulse, young consumers now pay an average of $40 a month for three streaming platform subscriptions. This expense has become a concern for some young consumers, with 35% of Gen Z and Millennials stating that they would cut back on streaming subscriptions if the economic situation worsened.
In response to this, ad-supported platform subscriptions have gained attention from young consumers. These subscriptions offer more attractive prices, and 39% of young consumers express interest in this alternative. In fact, 29% have already signed up for ad-supported subscriptions, while only 31% of young people would not choose this new model.
The report by YPulse reveals that 40% of young people use Disney+ every week, indicating its popularity. However, a third of young Netflix consumers are resistant to the idea of ad-supported subscriptions.
Interestingly, Millennials and parents of Millennials show more willingness to take advantage of ad-supported subscriptions compared to Generation Z. This is especially true for parents who are more interested in streaming platforms to entertain their children.
Overall, the rise of ad-supported subscriptions reflects the changing preferences of young consumers in the face of economic challenges. As streaming platforms continue to evolve, it will be interesting to see how this trend shapes the future of the industry.
Credit: The Star : News Feed
