The rise of ad-supported tiers in streaming services reflects a shift in consumer behavior, driven largely by increasing subscription costs, making cheaper options more appealing.
In 2024, a notable majority of new Peacock and Disney+ subscribers opted for ad-supported plans, indicating a significant trend towards cost-saving alternatives in streaming.
Netflix's ad-supported tier, launched two years prior, has been embraced by over 70 million monthly users globally, with more than half of new members choosing the ads option.
In contrast to Netflix, Amazon's introduction of ads on Prime Video involved a price increase for ad-free viewing, sparking discontent among existing subscribers.
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