The new streaming bargain: double the ads, cut the bill
Research from subscription bundling platform Bango, based on a survey of 2,500 US consumers, found that 36% of Americans would tolerate twice as many ads in streaming/subscription services in exchange for a lower monthly price, rising to 46% of Millennials and 49% of Gen Z. The report says US consumers pay for an average of 5.2 subscriptions costing about $69 per month, with 23% saying they spend more than they can afford (41% among Gen Z). Willingness to accept more ads was reported as highest among Apple TV users (52%), followed by Disney+ (48%), HBO/Max (47%), Netflix (44%) and Amazon Prime Video (40%).
Key Takeaways
- 36% of US consumers would tolerate 2x ad load for a cheaper subscription; willingness jumps for Millennials (46%) and Gen Z (49%).
- Consumers report paying for 5.2 subscriptions on average (~$69/month); 23% say they’re spending beyond their means (41% among Gen Z).
- By service, willingness to accept more ads is highest among Apple TV users (52%), then Disney+ (48%), Max (47%), Netflix (44%), and Prime Video (40%).
- “Lower price for more ads” is becoming a mainstream lever alongside bundles, discounts, and partnerships—especially for younger cohorts.
Why It Matters
This is the “ad load as price elasticity” era: viewers aren’t rejecting ads, they’re negotiating them. For streamers, that shifts the monetization playbook from binary (SVOD vs AVOD) to calibrated ad density, tiering, and bundles designed to defend retention without gutting ARPU. The generational split is the headline risk/opportunity—Gen Z’s affordability pressure could accelerate churn unless ad-supported and bundle options are frictionless. The platform-by-platform differences (notably Apple TV’s higher tolerance) hint at perceived value gaps and audience composition—useful signals for pricing tests, ad product design, and partner bundle strategy.
Read full article at lightreading.com
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