蘑菇AV

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

Only 49% of respondents have a cable or satellite TV subscription, down from 63% three years ago. Younger generations are more likely to state they will cancel these subscriptions within the next 12 months, with 23% of Gen Zers and 18% of millennials planning to cancel compared to 8% of baby boomers.

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).

OTT video is popular whether it鈥檚 free or paid. Every global region and country we track is engaged with these platforms, some very deeply. But new viewers will be hard to find.

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

The news: The 2025 NBA Finals drew just 10.2 million viewers on average, among the weakest results in two decades鈥攜et Game 7 peaked at 19.3 million, the highest since 2019. Traditional ratings miss the full picture, though: social views on NBA Finals content soared 215% year over year to 5 billion. Our take: Gen Z sports fans are watching differently鈥攙ia highlights, short clips, and mobile-first formats on YouTube, Instagram, and TikTok. TV still matters, but leagues like the NBA must master new distribution models. With streaming growth and a massive $76B media deal in place, the future is already digital.

Time spent with subscription OTT (sub OTT) will grow a few percentage points per year for the next few years. Netflix鈥檚 share of total time spent in 2024 was larger than that of any other streaming service, according to Comscore. The vast majority of Netflix viewing is still happening ad-free.

YouTube鈥檚 ad and subscription units surpassed $50 billion in revenues for the 12-month period ending in September 2024, marking the first time it鈥檚 reached this milestone. YouTube dominates US streaming viewership and is expected to cross 250 million viewers next year, per our forecast. The platform commands 67% more US viewing time than Netflix.

Behind the shift: As economic uncertainty runs rife and the subscription streaming market approaches its ceiling, free streaming options are becoming more appealing. 鈥淧eople are abandoning linear. Subscription services have sort of reached saturation.

An economic downturn could lead to viewers downgrading their ad-free subscriptions in favor of cheaper, ad-supported viewing options. If so, the increased ad supply would contribute to lower ad prices. Still, growth in ad-supported viewing could encourage marketers to spend more on CTV. Linear TV faces a starker outlook. Ad spending on linear TV will shrink 15.8% in the best-case scenario.

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.