Prime Video and Netflix may have been onto something with their recent expansions into ads. That’s because two-thirds of TV consumers now say they’d rather watch a cheaper, ad-supported option over a more expensive, ad-free offering, according to Hub Research’s new “TV Advertising: Fact vs. Fiction” report.
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. 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.
When Hub Research asked the same question in June of 2021, 58% of respondents said they would choose the less expensive ad-supported plan. In December of 2024, that number jumped to 66%.
Additionally, 66% of respondents labelled ads during live-streamed events as “more tolerable” than ads that appear during on-demand content. That’s especially notable as the study found live-streamed events account for roughly one third of overall viewing time. Over half of participants even agreed with the statement: “Ad breaks during Live TV give me a chance to take a break.”
The acceptance of live-streaming ads was even greater for younger viewers. Of viewers aged 16-34, 69% said that ads during live TV were “more tolerable” than ads placed in on-demand content. When it came to viewers aged 35-54, 66% of respondents agreed with that statement, while 61% agreed in the 55-74 age range.
“Over the past three years, it’s clear most viewers prefer watching ads if they can save on TV subscriptions. 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,” Mark Loughney, Hub Research senior consultant, said in a Monday statement. “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.”
This report comes as ad-supported options have become more and more popular in the world of streaming. After years of denouncing ads, Netflix launched its ad-supported option in 2022, a subscription tier that, as of November of 2024, accounts for 70 million monthly users globally. And last year, Amazon surprised the streaming world by adding advertisements to all of Prime Video’s programming. Other major streamers such as Max, Paramount+, Peacock and Hulu have also long had ad tiers.
