Ad-Supported Plans Supercharge Streaming Growth with 71% of Net Additions
The explosive growth of ad-supported streaming plans have been a winning proposition for audiences and entertainment companies. According to new data from Antenna, those plans with commercials have been the key driver of growth since the start of 2023. More than 7 of 10 net new subscriptions are plans with ads.
Every day, some subscribers join and others quit. But while the ad-free streamers sometimes suffer periods of greater losses than gains, ad-supported plans have never had a month with more quitters than joiners. In 2024, Antenna reports ad-free streamers had 900,000 more people quit in the first quarter and 500,000 more quitters in the third quarter. But ad-supported streamers ended up 7.5 million and 6.2 million in the same time frames.
What’s even more remarkable is how happy subscribers seem, regardless of which plan they choose. Antenna reports 43% of ad-free subscribers are still with their streamer after 9 months. And 42% of ad-supported subscribers stick around after 9 months.
Even when you split subscribers by age, gender, ethnicity, or income, there’s minimal difference between which plan people choose. Just 14% of people always avoid ads. The huge majority (68%) are considered “ad managers” – they’ll have some services with ads and some without.
In many cases, the cost savings make the commercial breaks worth dealing with. Hulu, for example, costs $9 more per month if you want to avoid ads. Netflix charges $10 more to skip commercials. For Prime Video, it’s only $3 more to go ad-free.
Ultimately, the availability of inexpensive ad-supported plans is good for everyone. Audiences can save money and stretch their dollar to stream more. And entertainment companies get a chance to get their shows and movies in front of more people while monetizing their users.
