Good news for advertisers and streamers: paid, ad-supported subscriptions for services like Amazon Prime, Netflix and Disney+ are doing good business. With less money to burn, consumers have decided they can put up with brands “flooding the zone” of their favourite shows, which are usually saturated with the same commercials on repeat.
Ad-supported models were chosen by nearly 40% of new VoD subscribers in Q4 2024, up from 21% the year before. For Netflix, 66% of new subscribers chose the ad-supported tier. Kantar’s Entertainment on Demand report shows that retention rates are decent, too: 43% of ad-tier users are happy with what they get, which which is better than for ad-free subscribers.
Sport on streamers, as with linear broadcasters, continues to boost audiences and reward investment. Netflix’s deals with WWE and NFL drove 18% of new subscriptions globally in Q4 2024 and YouTube credits its acquisition of NFL’s Sunday matches to a 48% surge in subscribers. Meanwhile, Amazon Prime can now enjoy the benefits of its UEFA Champions League deal and Disney is integrating ESPN later this year. Comcast Xfinity has even introduced a “skinny” bundle offering only live sports and news content.
Andrew Skerratt, global insight director at Kantar, said: “Our Q4 2024 data unveils a significant shift in the global streaming landscape. Bold, innovative ad-supported models, live sports integrations, and an unyielding commitment to premium content are rewriting the rulebook on consumer behaviour. The future of streaming isn’t a distant dream – it’s a dynamic revolution, balancing stellar content with unparalleled viewing flexibility, and it’s already in full swing.”
None of this is necessarily good news for all the other broadcasters, of course. If you rely on advertising for your income, it’s now even more of a slog to fight for what is inevitably going to be a diluted share of the marketing dollar.
