Ad tiers to generate 54% of North American SVOD revenue

The shift toward ad-supported models indicates that the streaming industry has successfully transitioned from a pure-play subscription economy to a hybrid advertising powerhouse. This $45.1 billion revenue milestone validates the aggressive pivot by major platforms to prioritize ad-tier signups over premium ad-free tiers. Across the broader ecosystem, this trend forces a re-evaluation of ARPU metrics as advertising becomes the primary engine for domestic growth. Watch for whether the rare linear TV rebound seen in New Zealand appears in other mature markets as consumers hit a ceiling on the number of active paid streaming subscriptions.

Warner Bros. Discovery has leaned heavily on its ad-supported HBO Max tier as a growth lever, with roughly 40% of HBO Max subscribers now on an ad-supported plan, up 11% year over year, driving an 8% increase in streaming ad revenue. The company's Q2 streaming revenue surpassed $3 billion, jumping 9% year over year, and executives have signaled that ad-tier monetization remains in early stages. That trajectory mirrors the broader Ampere Analysis finding that ad-supported tiers are capturing a majority of North American SVOD revenue.

The Paramount-Skydance merger is accelerating consolidation of ad tech infrastructure across streaming properties. Paramount Skydance reported that Paramount+ revenue jumped 16% year over year in Q2, with upfront commitments growing by double digits and the company on track to converge its tech stacks across Paramount+, Pluto TV, and BET+ by end of summer. CEO David Ellison has stated that the combined Paramount+ and HBO Max service would reach approximately 200 million subscribers, creating a significantly larger addressable audience for ad-supported monetization. The merger trial, challenged by state attorneys general on antitrust grounds, is scheduled for March.

On the technology side, Warner Bros. Discovery is upgrading its ad-tech stack with expanded agentic AI capabilities supported by Amazon Web Services, deploying AI agents for media planning, dynamic forecasting, real-time campaign optimization, and closed-loop measurement across both linear TV and digital properties. Meanwhile, Paramount and WBD both rely on Comcast-owned FreeWheel as their shared ad server and work with Magnite's supply-side platform, providing a foundation for eventual stack consolidation. According to Antenna estimates, Paramount+ has 13.5 million U.S. ad-supported subscribers and HBO Max has 12.3 million, figures that underscore why the ad-tier revenue share is climbing so rapidly across the North American market.