The news: Ad-supported streaming has reached critical mass. Nearly half (46%) of US streaming subscribers now pay for ad-supported tiers across platforms like Disney+, Netflix, Hulu, Peacock, HBO Max, and others, according to a new report from Antenna.
- Over the past nine quarters, 71% of net new subscription video-on-demand (SVOD) subscribers have come from ad-supported plans.
- Ad-supported subscriptions now account for 57% of Q1 2025 gross subscriber additions, down just 1 percentage point from last year’s NFL-driven spike.
Zooming out: Netflix’s ad-supported tier now reaches 94 million global monthly active users, up from 70 million just six months ago.
- Disney’s ad-supported footprint spans 164 million monthly active users across Disney+, Hulu, and ESPN+, up from 157 million just four months prior.
- Amazon Prime Video reaches 130 million ad-supported viewers in the US alone, following its January 2024 shift to default ad inclusion.
- HBO Max and Peacock both highlighted their expanding ad models during the latest Upfronts, signaling continued investment in hybrid monetization.
Why it matters: In just a few short years, ad-supported streaming subscriptions have nearly become the default for US consumers, signalling a willingness to consume advertising and an appetite for cheap access to entertainment.
- Consumer openness to ads is high: 86% of subscribers offered an ad-supported option have accepted it, and 75% of all streaming users have tried an ad-supported plan in the past four years.
- Ad tiers are bringing in new customers: Antenna reports that 65% of ad-supported subscribers are entirely new to the platforms, while 23% are returning users (“win-backs”), and just 11% downgraded from ad-free plans.
- Loyalty concerns have been overstated: Antenna’s Q2 2025 report shows no significant retention differences between ad-supported and ad-free subscribers.
- Streaming providers are shifting strategies: With ad-free pricing climbing faster than ad-supported plans, platforms are gently steering users toward more monetizable tiers. For instance, while ad-free costs might rise 20%, ad-supported tiers only go up 10%, subtly boosting uptake.
Our take: The rapid rise of ad-supported streaming shows the format becoming the default trajectory for the industry. Platforms are no longer treating ad-supported tiers as a budget option but as a core growth driver.
If current patterns hold, the majority of streaming growth going forward will be driven by these hybrid models—especially as platforms test next-gen ad formats like interactive pause ads and AI-powered targeting.