Viewers Increasingly Tolerant of Ads; Streaming Video Experience Seen More Positively Than Others

Source: marketing charts

As more TV viewers watch free streaming services with ads, their preference for lower-cost subscriptions with ads rather than ad-free streaming is growing. So finds Hub Entertainment Research in its latest analysis of the topic.

The survey asked TV viewers which statement comes closest to how they feel about ads: “If watching ads will save $4-$5 vs. watching ad-free, I’ll choose that option”; or “If there’s an ad-free option, I’ll choose it even if it costs $4-$5 more per month.”

About two-thirds (66%) went with the former option (saving money) versus the remaining 34% who would prefer to avoid ads. That 66% share preferring to save money is the highest figure in the biannual survey results dating back to June 2021, besting the previous high set 6 months earlier, in December 2023.

In further results from the survey regarding ad tolerance, more than one-third (35%) share of respondents said that content matters the most, and that if they’re really interested in a show then it doesn’t matter if there are ads. A majority (53% share) indicated that they can tolerate a certain number of ads. That left just 1 in 8 (12% share) saying they’d never consider a platform with ads no matter how much they like the shows. That 12% is again the lowest figure in the survey’s history – further indication of viewers’ growing acceptance of ads.

Notably, almost 8 in 10 viewers either strongly (23%) or somewhat (55%) agree that there is a big difference between how much advertising they see on some TV services versus others.

With regards to the ad experience, 53% of respondents indicate that Advertising-Based Video on Demand (AVOD) services (which have grown in popularity in recent years) handle ads/promotions either a lot better (22%) or a little better (31%) compared to others. Fewer than half as many (25%) could say the same about MVPD services.

Finally, more than one-third (35%) of viewers say they pay attention to most or all ads during a show if there is a reasonable amount of ads, whereas just 21% of viewers say the same if there is an unreasonable ad load.

For more, download the executive summary of the report here.

About the Data: The results are based on a May survey of 3,000 US consumers ages 14-74 who watch at least one hour of TV per week.