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Streaming Customers Prefer Cheaper, Ad-Supported Plans
By Movieguide® Contributor
As costs continue to rise, streaming customers don’t mind sitting through a few commercials to save some money.
A recent study found that users prefer ad-supported plans overall because they’re cheaper.
“These findings came from interviews with 3,000 subjects in the United States who were between the ages of 14 and 74 and reported watching at least one hour of TV per week,” The Wrap reported. “At first glance, that statistic doesn’t seem too surprising. Who doesn’t want to save a few bucks a month? But it marks a trend towards more ad tolerance for many viewers.”
What is surprising is that this is a rising preference. In 2021, 58% of people stated they would choose an ad-supported, cheaper option. That number has since risen to 66%.
READ MORE: 2024 STREAMING HITS AND MISSES AND WHAT TO EXPECT FOR 2025
Hub Research senior consultant Mark Loughney chimed in on the new data.
“Over the past three years, it’s clear most viewers prefer watching ads if they can save on TV subscriptions,” he said. “More recently, we’re seeing that even the most ad-intolerant consumers are deciding the trade-off of watching ads for lower costs is worthwhile. There is plenty of good news here for streaming services and their advertisers. Most consumers think the amount of advertising is reasonable, especially in live viewing. As streamers add more live content, especially sports, advertisers will have greater opportunities to reach more viewers who are paying full attention to their messages.”
The addition of live sports ups people’s willingness to tolerate ads.
“Major college and professional sports leagues continue to expand its games to streaming services, like Prime Video as the new home for NFL Thursday Night Football, and Netflix’s recent success with NFL Christmas games. The potential for more customers opting for the most affordably priced subscription to watch games and other content increases. It becomes a win-win for everyone,” MovieWeb said.
This new data should come as no surprise. Streamers overall have recently hiked prices, leaving people searching for cheaper options.
READ MORE: WHY STREAMING SERVICES ARE PLANNING 2024 PRICE HIKES
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