Around two-thirds of Americans would accept ads on streaming platforms if the subscription price were reduced. — AFP Relaxnews
Americans are willing to accept ads on their streaming platforms. Especially if it can help them save money. According to one study, two out of three Americans would opt for a subscription to an ad-supported streaming platform if it saved them up to five dollars a month.
In the US, more and more viewers are turning to ad-supported offerings from streaming platforms at lower prices. According to a survey carried out in December 2023 by Hub Entertainment Research,* almost two out of three Americans (64%) would opt for the ad-supported option if it saved them between four and five dollars a month.
This proportion has increased since 2022. Back then, 57% of respondents were in favour of the new ad-supported subscriptions.
“Interestingly, the willingness to accept ads for cost savings has increased over the past year, possibly indicating that consumers are looking for ways to trim their streaming budgets without giving up too much or that the introduction of ad-supported tiers by more and more streaming providers has normalized ads in the SVOD space,” the report says.
Ad-supported subscriptions have become the latest strategy for giants such as Netflix, Disney+ and Max. Recently, Prime Video announced its entry into the ad-supported subscription market. Unlike its competitors, this streaming platform's integrated ads option will be the default, while subscribers will be offered the option of paying an additional US$2.99 per month to switch back to an ad-free subscription.
Meanwhile, the proportion of Americans willing to pay an extra four to five dollars a month to avoid ads has fallen. While 43% of Americans surveyed expressed a preference for ad-free subscriptions in December 2022, only 36% now have this view.
Americans, who have been battling inflation as well as pressure in the housing market in the last few years, have already accepted the possibility of watching ads with their streaming programs. Thirty-nine percent of Gen Z and Millennials said they were interested in ad-supported streaming platforms, while 29% have already signed up.
Tiers with advertising could help stem the loss of financially challenged subscribers from platforms, since according to a Parks Associates study, three out of ten American households unsubscribe from streaming services to save money. – AFP Relaxnews
*Survey of 3,000 American viewers, aged 14 to 74.
