35% of streaming subscriptions are cheaper ad-supported plans

Analysts report that 35% of all streaming subscriptions are ad-supported plans as consumers opt for budget-friendly offerings.

@DeekeTweak
Published Wed, Apr 20 2022 4:52 PM CDT   |   Updated Thu, May 12 2022 2:27 PM CDT

Subscription price hikes have pushed consumers towards budget-friendly ad-based offerings.

35% of streaming subscriptions are cheaper ad-supported plans 753 | TweakTown.com

According to findings from analyst firm Antenna, audiences in the United States are opting for cheaper subscription plans with ads. The firm estimates that 35% of new streaming sign-ups are for the lower-cost ad tiers offered by SVOD services like Peacock, HBO Max, Paramount+, and Hulu. Cord-cutting mentality has nearly gone full-circle as costs pressures consumers back towards the ad-based models of traditional TV.

The annual growth rate of ad-based sign ups has jumped from 19% in 2020 to 35% in 2022, an increase of 17 percentage points.

"Antenna data indicates that ad-supported plan tiers continue to take an increasing share of new Premium SVOD Sign-ups. Below 20% of Total Premium SVOD Sign-ups in 2020 were to an Ad-Supported plan tier. That figure rose to 31% in 2021. In 2022 thus far, 35% of Sign-ups have been to an Ad-Supported plan option," Antenna's media and entertainment lead Brendan Brady writes.

The numbers have convinced top streamer Netflix to adopt their own ad-based plan.

Netflix recently lost over 200,000 subscribers for the first time in 11 years, with CEO Reed Hastings saying ad subscriptions would allow users to "get a lower price" and that it "makes a lot of sense" for the company. Netflix's current standard option, which offers 1080p streaming across 2 household screens, currently costs $15.49/month in the United States.

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NEWS SOURCE:antenna.live

Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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