蘑菇AV

The news: Streaming has officially surpassed pay TV in the US, with 50.4% of households no longer subscribing to cable or satellite, per our forecast. But streaming鈥檚 ad experience still has work to do. Hub Research finds two-thirds of viewers prefer live TV ad breaks over those in on-demand streaming, and Gen Z remains the least likely to adopt ad-supported tiers. Our take: Streaming isn鈥檛 a free pass to interrupt. Gen Z demands relevance, brevity, and control鈥攎eaning streaming platforms must reengineer how, when, and where they serve ads. The format must evolve if AVOD is to survive the next wave of viewer expectations.

As streaming subscription prices increase, viewers are becoming more amendable to ad-supported tiers.

The ecommerce giant鈥檚 launch of ads on Prime Video instantly gave it the largest audience for an ad-supported subscription video service in the US.

Continued growth in ad-supported streaming is helping boost overall share of subscription streaming viewers. Viewers who choose advertising plans grew 16% between 2023 and 2024, and free ad-supported streaming TV (FAST) services like Pluto and Roku are also climbing steadily, according to our forecast. The shift from linear TV to streaming is causing legacy media giants like Paramount, Warner Bros.

Those new subscribers don't seem to be watching as much Netflix as the old subscribers did, and specifically those who are choosing the ad-supported tier, the cheaper option, don't seem to be watching as much Netflix as the older traditional members or even newer members who choose to pay to not see ads. Those folks seem to watch more Netflix.

Sub OTT is increasingly dominant within digital video, even if it鈥檚 not yet the top choice for video overall. By 2027, sub OTT streaming will account for 46.7% of all time with digital video and 31.5% of total video.

Among digital activities, subscription OTT (sub OTT), social networks, and digital audio take up the most time. Sub OTT and free ad-supported streaming TV (FAST) are among the few activities still seeing meaningful annual growth in time spent. Most others will be stagnant or even decline. For active users of specific formats, traditional TV (4:01) remains the most popular, followed by sub OTT (2:43).

The news: Warner Bros. Discovery (WBD) plans to split into two separate public companies by 2026, one focused on streaming and studios and the other on global cable networks, the company announced. Its streaming company will include HBO Max and WBD鈥檚 movie properties, while the global networks company will include TNT Sports, Discovery, and CNN. Our take: WBD鈥檚 move emphasizes that sticking with a one-size-fits-all model is no longer viable given traditional TV declines and the rise of streaming. Managing decline while pursuing growth requires two fundamentally different playbooks.

Broadcaster (BVOD), ad-supported (AVOD), and subscription video-on-demand (SVOD) will jostle for position. There will likely be some give-and-take across these services, as consumers deal with economic factors and come to grips with the volume of TV-like content available to them in various ways. Sources. Accel. Accenture. Adyen. Coleman Parkes Research. Dealroom.co. Google Cloud. IZEA.

This is the Q1 2025 installment of our quarterly 鈥淎d Spending Benchmarks鈥� series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.

With 94 million monthly active users on its ad-supported tier, Netflix has the reach to draw performance and brand buyers alike. By expanding DSP access and enabling audience matching, Netflix is aiming to offer personalization at scale鈥攚ithout the brand safety risks of social platforms.

The news: Amazon has quietly doubled the ad load on Prime Video since launching its ad-supported tier in early 2024, per Adweek. The platform now serves 4 to 6 minutes of ads per hour, up from 2 to 3.5. While the increase hasn鈥檛 been formally announced, media buyers confirm the shift and tie it to Amazon鈥檚 broader effort to scale its connected TV (CTV) inventory.

The news: Netflix is deepening its investment in unscripted TV as it aims to expand its user base and gain ad-supported subscribers, per The Wall Street Journal. The streamer reportedly spoke with Spotify about partnering on live events, including live concerts and music awards shows. Our take: Netflix鈥檚 unscripted push is a strategic move that will solidify it as a destination for high-quality originals and reality programming alike, where ad inventory is ripe, costs are low, and audiences come from all walks of life.

The news: Gander Social is an upcoming Canadian social platform built on the decentralized AT Protocol, similar to Bluesky. Gander rejects algorithmic feeds, ad surveillance, and dark UX patterns, per Metricool. As an alternative to networks like X, Meta鈥檚 Threads, and Bluesky, it offers user-controlled content, privacy by design, and community-first tools鈥攈osted entirely within Canada. It will be available as a closed beta in August. Our take: As algorithmic fatigue and platform distrust grow, demand is rising for community-driven, ad-light spaces. Marketers should watch Gander as a testbed for the next wave of privacy-first, hyper-local platforms.

FAST shows no signs of slowing down: From the Roku Channel to Tubi, FAST continues a path of acceleration that will be bolstered by economic uncertainty.

Ad-supported streaming now drives most new subscriptions: Platforms are embracing ads as a primary monetization strategy, not a fallback.

If MNTN can keep expanding access and functionality without pricing out its core customer, it may be well positioned to ride the next wave of growth in ad-supported streaming.

Most consumers accept ads in streaming: An Attest study highlighted the growing preference for ad-supported options as streaming proves sustainable.

The digital landscape in Europe is slowing, but opportunities for advertisers, brands, and retailers still exist. Knowing where to look to achieve the best outcomes will be paramount.

Insights from IAB NewFronts: Streaming and AI innovation are transforming marketing鈥攂ut in a period of rapid change and economic unrest, adaptation is key.

After introducing its cheaper ad-supported tier in 2022 to respond to its first-ever subscriber decline, the offering drove over 55% of new subscriptions in ad-supported markets. While the company didn鈥檛 disclose subscription numbers in Q1, it set a subscriber growth record in Q4 2024, largely driven by its ad-supported option.