U.S. consumers could save $366 thanks to ad-supported streaming tiers
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John Moulding
| 30 October 2023
1 U.S. consumers could save 366 thanks to ad supported streaming tiers
Parks Associates has revealed new research showing that the average U.S. streaming household, which subscribes to 5.6 streaming services, could save $366 per year (on average) by switching from premium subscription tiers to ad-based tiers.

The analyst and research firm notes that Netflix, Prime Video, Hulu, Disney+, Max, Paramount+, Peacock, and Discovery+ all offer or plan to offer an ad-based option. Parks Associates found that these are, on average, $5.44 cheaper than the basic, ad-free service from the same company.

“The move to ad-based services provides more options for consumers, especially as they are seeking a balance between costs and the desire for multiple content options,” comments Jennifer Kent, Vice President, Research at Parks Associates. “Not everyone’s favourite streaming service offers a cheaper ad-based service tier yet, and many subscribers will choose a mix of ad-based and premium options, depending on household preferences.”

Parks Associates will be hosting its annual Future of Video conference on November 14-16 at Marina del Rey, CA, featuring keynotes from Sling TV & DISH Network, ESPN+/ESPN, Google, Red Nation Television Network, AiBUY and many others.

Future of Video includes a pre-conference research workshop titled ‘OTT Market & New Era of Video Consumption’ followed by two days of content that includes insights from the Parks Associates analyst team.