Streaming Giants Get Consumers’ Support for Ads in Subscription Plans

Streaming Giants Get Consumers’ Support for Ads in Subscription Plans

News by Marge Serrano
Published: December 25, 2022

With the rise of streaming services comes more advertising opportunities for brands. But how does it integrate with the users’ overall experience?

Streaming platforms have increasingly taken to ad-supported business models this year, but their rollout has come with some challenges. Netflix in November launched its ad-supported plan, which costs $6.99 and is less than half the price of its standard package, but it has reportedly so far fallen short of its predicted success.

Hub Entertainment Research’s recent report revealed that 57% of consumers prefer watching ads if it saves $4 to $5 on a streaming service subscription. The findings also link shorter ad breaks to increased consumption.

Aside from that, respondents are twice as likely to opt for a streaming service that offers both ad-free and ad-supported tiers versus using a platform that only provides “limited ads.” Most consumers also note using at least one free ad-supported streaming service for a better viewing experience.

This study comes at the heels of new ad-tier launches by Netflix and Disney+, which revealed that those who already subscribed to the two platforms anticipate switching to the platforms’ ad-supported options. Thus, more people are starting to patronize ads in-stream in exchange for a more affordable subscription.

Disney+ launched on December 8th and is equipped with over 100 advertisers, but the new ad tier came with a higher price tag for its traditional offering of $10.99 each month compared to the previous charge of $7.99. The increase might help explain why one in 10 Disney+ subscribers anticipate dropping their subscription entirely, per Hub’s findings.

Despite these concerns, the new additions are still drumming up interest, aside from current subscribers looking to switch to Disney+ and Netflix’s ad-supported offering, 22% of those who do not subscribe to Disney+ now report an interest, with the exact totals accurate for Netflix non-subscribers.

At the top of the list are Discovery+ and HBO Max when it comes to attention ads on the platforms receive. In fact, 37% of respondents for both platforms say they gave the ads nearly “complete” attention. There’s also Hulu (23%), Paramount+ (19%), and Peacock (12%) competing in this feature.

Engagement is one of the most significant factors closely tied to ad experience. The report above proves that respondents enjoyed their viewing experience, including ad load and break length, reporting that they pay attention to

These data bring in a new wave of opportunities for advertisers, streaming platforms, and the user base. The future of streaming indeed has come, and this promises exciting opportunities that await users on their favorite streaming sites.

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