Many Americans are open to the idea of ads on their streaming platforms, especially if it can help them save money. A study has found that two out of three Americans would choose a subscription to an ad-supported streaming platform if it saved them up to five dollars a month.
In the US, there is an increasing number of viewers opting for ad-supported offerings from streaming platforms at lower prices. According to a survey conducted in December 2023 by Hub Entertainment Research, nearly two out of three Americans (64%) would choose the ad-supported option if it saved them between four and five dollars a month.
This percentage has actually risen since 2022, when 57% of respondents were in favor of the new ad-supported subscriptions.
According to the report, “Interest in accepting ads for cost savings has gone up over the past year, possibly indicating that consumers are seeking ways to cut down on their streaming expenses without sacrificing too much, or that the introduction of ad-supported tiers by more streaming providers has made ads more common in the SVOD space.”
Giants in the streaming industry such as Netflix, Disney+, and Max have also started offering ad-supported subscriptions. Most recently, Prime Video has entered the ad-supported subscription market. In this streaming platform, the integrated ads option will be the default, while subscribers can choose to pay an extra US$2.99 per month for an ad-free subscription.
Meanwhile, the percentage of Americans willing to pay an additional four to five dollars per month to avoid ads has decreased. While 43% of Americans preferred ad-free subscriptions in December 2022, only 36% hold this view now.
With the financial challenges American consumers have been facing, many have come to accept the idea of watching ads with their streaming programs. Thirty-nine percent of Gen Z and Millennials have shown interest in ad-supported streaming platforms, and 29% have already subscribed to them.
Tiers with advertising could potentially help prevent financially struggling subscribers from leaving platforms, as a study by Parks Associates showed that three out of ten American households cancel their streaming services to save money. – AFP Relaxnews
*Survey included 3,000 American viewers aged 14 to 74.
