Ad-Supported Tiers On Streaming Services Expected To Generate Billions In Revenue By 2027

TV & Film

Aug 4

In a world where things are constantly changing streaming platforms couldn’t fall behind. Companies and studios are adding ad-supported tiers to their services to make them more profitable. Streaming platforms are looking forward to increasing their income in, basically, two separate ways: customers start paying higher-cost services to get rid of ads, or the lower-cost tiers increase their ad revenue drastically.

According to research from Ampere Analysis, ad-supported versions could generate these streaming services revenues of over $10 billion by 2027. The London-based firm explained that “an increasingly important element of streaming service monetization, and hybrid tiers often generate more revenue per subscription than their ad-free counterparts.”

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Ampere displayed the results of their research in the following graphic:

Ad-supported analysis graph — Image Source: What’s On Disney Plus

We can see services like Netflix, Disney+, and HBO Max having a significantly small number of customers using their ad-supported services. Whether or not the numbers change will directly depend on the prices for these services. Companies such as Disney, look forward to launching their ad-supported versions internationally in the following months.

People have enjoyed streaming their favorite series and movies without ads for years; it is one of the reasons it was created to begin with, to “watch when you want, how you want, without interruptions." With the increase in prices, many people will switch to ad-supported versions of these services.

To a certain extent is comprehensible the need to change the market but, is this corporate greed that fuels the change? Or will these billions in revenue lead to something positive? Will the companies use the money to correctly pay their workers as the Writers and Actors strike demands? We can only hope all these changes bring something good for all, for the writers, the actors, for the companies, and the customers.