Ad tiers in streaming prompt upgrades plus consumers ready for bundles, survey notes

A new survey into the dynamics of digital subscriptions by Bango, encompassing feedback from over 5,000 American subscribers, provides an insightful look into how advertisements, password-sharing policies and the advent of bundled subscriptions has influenced the U.S. subscription market.

The report, titled “Subscription Wars 2024,” offers an analysis, noting that the introduction of advertisement tiers has led to a significant portion of subscribers, 36%, opting to enhance their subscription levels to bypass ads.

This trend underscores a clear preference for ad-free experiences among a substantial segment of the subscriber base. However, the introduction of ads has not been universally welcomed, with 31% of participants indicating they have discontinued at least one subscription service due to the advent of advertisements, highlighting a critical challenge for subscription-based companies.

The study delves into the varying degrees of ad tolerance among different types of content consumers.

It was found that 35% of TV and video subscribers chose to pay extra to eliminate ads, a figure that escalates to 48% among music streaming service users and, remarkably, to 71% for subscribers of sports content. 

Additionally, the report examines the implications of stringent measures against password sharing.

Following the implementation of strict guidelines by platforms such as Netflix, 35% of individuals who previously accessed services without payment have now subscribed, indicating a direct impact on subscriber acquisition. Despite these measures, the desire for content variety and the ability to seamlessly switch between platforms remains strong, with 35% of subscribers frequently altering their subscription statuses to cater to their changing content demands.

The year 2023 marked a significant shift towards consolidating subscriptions into bundled services.

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The Bango study reveals that a majority of subscribers, 73%, favor the convenience of a single platform for subscription management, with 69% expressing a preference for consolidating their subscription payments into one monthly bill.

However, there is notable caution among subscribers regarding the management of these bundles, with a preference for mobile phone providers over cable companies as the preferred managers of such services.