Two-thirds of streamers now choose ad-supported tiers
According to Deloitte's 2026 digital media trends report, two-thirds of streaming subscribers are now opting for ad-supported tiers, a 20% increase from 2024. This shift is driven by rising subscription fees, with consumers showing increased price sensitivity and a willingness to accept ads for lower costs. Streaming platforms are leveraging this trend to maintain dual revenue streams from subscriptions and advertising.
Key Takeaways
- Deloitte surveyed more than 3,500 U.S. consumers for its 2026 digital media trends report.
- Two-thirds of streaming subscribers now opt for ad-supported tiers, a 20% increase from 2024.
- The average subscribing household spends $69 a month on streaming video services.
- About 60% of consumers said they would cancel their preferred streamer if prices increased by $5.
- Last year, Disney, Netflix, HBO Max and Apple TV all raised prices, with premium plans ranging from $12.99 to $24.99.
Why It Matters
Higher prices are pushing more viewers into ad-supported plans, which helps streaming platforms keep subscription revenue while adding ad revenue on the same customer base. The report also suggests pricing power is more limited than it looks: average household spend stayed at $69 a month, but a $5 increase would trigger cancellations for 60% of consumers. That makes ad tiers a core part of the current streaming business model, not just a lower-cost option. Watch the next round of price increases and whether services keep steering new signups toward ad-supported plans.
Read full article at latimes.com