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56% of New Subscribers Opt for Ad-supported Plans: Streaming Survey

May 16, 2024
in Technology
56% of New Subscribers Opt for Ad-supported Plans: Streaming Survey
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(Pixabay)

Although Hulu appeared as the first platform to introduce ad-supported subscriptions, almost every streaming service now features an ad tier as a cheaper alternative for the community. Similarly, the ever-changing streaming world is now noticing an uncommon surge in ad-supported subscriptions, driven by media companies’ move to increase the price of ad-free subscriptions consistently. 

According to the updated figures evaluated by Antenna, 56% of new subscribers chose ad-supported plans over ad-free subscriptions offered by streaming platforms today. Notably, the latest figure is the follow-up number of Antenna’s survey conducted in the last quarter of the previous year. At the time, the survey concluded that 51% of new customers preferred the ad tier over premium plans. It marks the first time ad-supported subscriptions exceeded the ratio of Ad-free subscriptions. 

As uncovered in the latest Antenna report, the 5% increase in the first quarter 2024 signifies the rising popularity of pocket-friendly ad-supported plans. The report interacts with multiple streaming services to produce this number.  HBO Max, Paramount Plus, Peacock, and Hulu are among the sources of Antenna’s survey. Peacock stands at the top to record higher ad-supported subscription plans among other content creators. 

As mentioned earlier, the higher cost remains the core reason users choose ad-supported plans. In 2023 alone, prominent streaming services such as Disney+, Hulu, and HBO Max extended their service charges by 25%, according to an August 2023 report. Understandably, they have not changed the ad-supported subscriptions so far.

Which Streaming Service Achieved Higher Ad-supported Subscriptions?

Customers’ data on the streaming platforms Antenna measures is undoubtedly kept as proprietary information. However, the research firm estimated the new sign-ups on the ad tier versus the ad-free tier. But it doesn’t break out the exact numbers.

79% of the new subscribers on Peacock, an American over-the-top streaming service owned by NBC Universal Media Group, preferred to enjoy video content through ad-supported plans. Its presentation of the NFL Wild Card game in January drove most ad-supported sign-ups. Likewise, the research firm noticed that 78% of viewers who subscribed during the Super Bowl champion Kansas City Chiefs and Miami Dolphins were still connected to the platform in March. 

Peacock is not the only streamer featuring an ad tier. Disney and Hulu have also performed well in attracting ad-supported subscriptions. Both streaming platforms previously announced merging their services to make viewers watch their content through one app. Similarly, 62% of new subscribers on Hulu opted for the ad-supported plans, and 58% of new subscribers on Disney did the same.

And when it comes to the world’s biggest streaming service, Disney leaves it behind regarding ad-supported plans. Netflix introduced its ad tier in late 2022, a month before Disney does likewise. However, a report published in August 2023 confirms users subscribe to Disney’s ad tier at double the rate Netflix offers. Another report published last month suggests that Netflix boasts 20 million users on its as-tier. Netflix, boasts around 270 million users worldwide in total.

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