Ad-based streaming could save consumers upwards of $366 year, study finds

With the proliferation of streaming services and the accompanying subscription fees, many consumers are on the lookout for cost-saving alternatives without sacrificing content quality. A new study by Parks Associates has highlighted a possible solution to the dilemma: switching to ad-based streaming tiers.

The research reveals that an average streaming household, subscribing to about 5.6 streaming services, could pocket savings of $366 annually by opting for ad-based tiers instead of the premium subscription tiers.

This comes at a time when leading streaming platforms like Netflix, Prime Video, Hulu, and Disney+, among others, are either offering or planning to introduce ad-based options. On average, these ad-supported tiers are $5.44 cheaper than their basic ad-free counterparts.

The findings will be part of the discussions at the upcoming sixth annual Future of Video event, scheduled for November 14-16 at Marina del Rey, CA. The event, sponsored by industry players such as Adeia, Bango, FPT Software, SymphonyAI Media, and AiBUY, aims to delve deeper into the evolving video landscape and the consumer behaviors shaping it.

“The move to ad-based services provides more options for consumers, especially as they are seeking a balance between costs and the desire for multiple content options,” said Jennifer Kent, VP, Research, Parks Associates.

“Not everyone’s favorite streaming service offers a cheaper ad-based service tier yet, and many subscribers will choose a mix of ad-based and premium options, depending on household preferences.”

This trend towards ad-supported streaming tiers could be a win-win, offering viewers a budget-friendly way to access their favorite content while opening up additional revenue streams for platforms and advertisers alike.

As the streaming realm continues to expand and adapt to consumer demands, the advent of more ad-based service tiers seems to be a logical step forward in fostering a balance between cost, content variety, and user experience.

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