Millions of people stream entertainment through various streaming platforms. One of the initial attractions with streaming content was that it was ad-free. However, as prices have continued to increase, consumers are becoming more open to cheaper options like lower-priced ad tier subscriptions. 

A recent report found that over one-third (36%) of US consumers expressed a willingness to see twice as many ads in exchange for lower subscription and streaming prices. Younger age groups are even more willing to watch more ads for less cost, with millennials at 46% and Gen Z at 49%. In addition, the willingness to watch more ads for lower costs is not tied to any specific platform. Approximately half of Apple TV (52%), Disney+ (48%), and HBO Max (47%) users would accept more ads for lower costs, and almost as many Netflix (44%) and Prime Video (40%) users would do so.

What does this mean for marketers? Ad tier packages and subscriptions could mean more subscribers and larger audiences, especially among Gen Z. However, price sensitivity, churn, and other factors could complicate reaching audiences and measuring audience data.