March 28, 2025

Streaming viewers accept advertising, but not if they're paying for it.

Trend Analysis
Szymon Karbowski
Streaming viewers accept advertising, but not if they're paying for it.

We can see an interesting trend in the streaming market that answers one of the general questions - which way should platforms go with ads? More and more streamers are launching ad-supported subscription services, but almost 80% of subscribers say that if they're going to pay for a streaming service, they don't want ads. Placing these ads creates a potential backlash among consumers.

This information comes from a new survey by Tubi, which also reveals that nearly half of Gen Z viewers found ads that did not seem to match their own preferences. Ads 'significantly disrupt' their enjoyment of the streaming experience. Tubi's research, like that of The Harris Poll, is self-serving, and that should be noted up front: the Fox-owned streamer, which claims more than 97 million monthly active users, mostly in the USA, is a largely free, ad-supported service.

These findings are a warning to streamers such as Netflix or Amazon Prime as they ramp up advertising and charge $7.99 and $8.99 per month respectively for the basic, ad-supported service. For example, 81% of consumers told Tubi that seeing ads is a fair trade-off for access to free streaming content, and encouragingly for ad buyers, 59% of viewers say they'd consider taking action after seeing interesting ads while streaming. This rises to 81% for Gen Z, but there's a problem: most ads miss the mark. 73% of Gen Z viewers feel that the ads they see while streaming 'don't seem to match my personal preferences'.

The takeaway is that market players have missed an opportunity to create more impactful and relevant advertising for brands. 'Overwhelmingly, consumers see paid-for platforms with ads as a bad deal,' the report says. 'Let's face it, ads can feel disruptive, but they're a more welcome interruption if they're relevant to the viewer and serve as a fair trade-off for free content.'

Another key conclusion from the survey is the budget concerns of a subscription-saturated audience. On average, consumers spend $129 per month on streaming + cable, which is $20 more than they spend on clothing each month. 56% of consumers say they closely monitor streaming services to avoid overspending, and Gen Z viewers are particularly cost-conscious, with 76% saying they have cancelled or would cancel their streaming subscription due to price increases. Content providers need to bear this in mind - there is a point at which streaming can simply become too expensive. On average, viewers juggle nearly 7 streaming services, with a mix of paid streaming services (3.9 on average) and free services (2.6 on average).

We know from the survey that other frustrations that lead to subscription cancellations include: removal of content (66% agree), irrelevant content (63% agree), tiered memberships (63% agree) and password cracking (45%, up 5% year-on-year). Two-thirds (67%) of Gen Z viewers have cancelled a streaming subscription because they finished watching the show or movie they were interested in - and there was no other relevant programming on the platform for them. A significant proportion of Gen Z are looking to reduce their streaming usage: 29% say they use more services now than they plan to in the future.

The survey found that sharing passwords is becoming a tricky social dilemma. Seven out of ten viewers said they wouldn't share their streaming login with a romantic partner unless they were in a serious relationship. 'Why? Because like a toothbrush, once it's shared, there's no going back,' the report says. 44% of Gen Z admit to using an ex's streaming platform login even after they've broken up. The unspoken rules of password sharing haven't got any easier. More than half (53%) of Gen Z viewers think password sharing has complicated relationships with family and friends, and 38% admit they've stopped dating someone because their tastes in TV and movies were so different. Tubi's conclusion: 'Perhaps the era of password sharing is over as viewers choose to keep their streaming relationships strictly professional.'

In terms of content, Tubi found that viewers prefer originals content over remakes. 70% of US streamers would like to see more TV shows & movies on independent or smaller creator platforms (up 4% year-on-year). 73% of Gen Z say they prefer to watch original content over franchises and remakes, and 72% of Gen Z streamers wish they had more of a say in the type of content made for streaming services.

This survey answered many important questions and gave the market very important data. Every platform owner should be familiar with these results and react accordingly. All this information needs to be studied and content providers need to learn pretty much what their subscribers want and do not want, how much they can pay and where the cost barrier is. The next step is to make changes, corrections, to give people what they really want, remembering that it has to go along with making a profit. Actually, Tubi did the whole streaming market a huge favor by doing this survey and publishing the results.

#SzymonKarbowski #StreamVX #StreamingServices #analysis #Tubi #Subscribers #GenZ #Netflix #AmazonPrime

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