Ad-Supported Streaming Tiers Gain Traction, FAST Fascinates Gen Z And Millennial Viewers – Study

deadline.com:

As streaming prices keep climbing, more subscribers are willing to opt into advertising to keep a lid on costs. Today, 54% of SVOD subscribers have at least one ad-supported tier of a paid service, up from 46% last year.

That’s one of the key findings in Deloitte’s 19th annual Digital Media Trends report, which the consulting firm released Tuesday.

The findings are from an online survey of 3,595 U.S. consumers conducted in October 2024. With Amazon Prime Video and Netflix recently turning to advertising as a consumer targeting tool and a supplement to subscription revenue, traditional media companies have also ramped up their efforts.

Execs have publicly declared a strategy of steering consumers toward cheaper, ad-supported subscription tiers and the companies favor the ad tiers when they are participating in bundled offerings.