Younger viewers more willing to accept ads to save on streaming costs, Hub study finds

More U.S. TV viewers are embracing advertising in streaming content, particularly younger audiences seeking to reduce subscription costs, according to new research from Hub Entertainment Research.

The findings, part of Hub’s semi-annual “TV Advertising: Fact vs. Fiction” study, show that viewers increasingly view ads as less disruptive than in the past. The data reflect a continuing trend in favor of ad-supported streaming tiers, with two-thirds of respondents in December 2025 saying they would rather save money than avoid ads — a significant increase compared to 2021.

The study, based on a survey of 3,000 U.S. consumers ages 14 to 74 who watch at least one hour of TV weekly, was conducted in November 2025.

It indicates that viewers under age 35 are especially open to ad-supported models and are more likely than older viewers to switch between ad-free and ad-supported service tiers. Nearly half of viewers in the 18–34 demographic reported such switching behavior, compared to 26 percent of those over 35.

The research also noted a gradual decline in the number of viewers who say they “can’t tolerate ads.” Many cited the shorter, less frequent ad breaks on streaming platforms as preferable to the more commercial-heavy experience of linear TV.

Economic concerns appear to be a major factor in changing viewing habits. Since fall 2022, more than half of viewers have said they are “very concerned” about the state of the economy. In the most recent wave, 54 percent reported such concerns, and 46 percent said they believe streaming services are raising prices more frequently than before.

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These financial pressures have translated into viewer action. Among those who are very concerned about the economy, two-thirds said they plan to cancel or reduce their spending on TV subscriptions. Lower-income viewers are also more likely to cut back.

Ad-supported tiers offer a lower-cost alternative that may help streaming services retain subscribers. Awareness of these tiers has grown steadily, with a majority of viewers now recognizing that Hulu, Amazon Prime Video, Netflix and Peacock offer such options. One-third of viewers now subscribe only to ad-supported services, a figure that rose significantly in the second half of 2025.

Viewers are also reporting that, despite rising costs, TV subscriptions still offer substantial value. Two-thirds said TV services deliver better value compared to other entertainment options. That number rose to 75 percent among those who regularly cancel and re-subscribe to manage their budgets.

“Young viewers continue to worry about the direction the economy is headed,” said Mark Loughney, senior consultant at Hub. “But for TV and video streaming providers, the news is better. By giving viewers the choice of accepting ads for cost savings, they are delivering great value compared to other entertainment.”

The report is the 10th wave of Hub’s “TV Advertising: Fact vs. Fiction” series. A free excerpt is available on the company’s website.