COMMENTARY

Ad-Free Streaming 'Stickier' With Consumers, FAST Fills 'Gaps,' Study Finds

• by Wayne Friedman , Staff Writer, 4 hours ago

In some not-so-good news for streaming TV-video media buyers, a new study shows that more expensive ad-free streamers are “stickier” with consumers than free or low-cost ad-supported platforms, according to Hub Entertainment Research.

Eighty-five percent of respondents in the study say they "definitely/probably" will have ad-free services a year from now, compared to 74% who say they will have ad-supported services.

Looking deeper, 19% say they "might/might not" have ad-supported services a year from now versus 10% who "might/might not" have ad-free services.

“People paying extra for ad-free services consider them more valuable and are more loyal,” say the authors of the report.

While the addition and the use of FAST (free ad-supported streaming TV) services like Pluto and Tubi help consumers feel they are getting more for their money, “loyalties to those services may not be as strong.” At best, these fill in the “gaps” for consumers who are unable to spend more on streaming/TV spending.

Price and content are two issues that consumers vacillate over when it comes to the streaming purchase. The study finds that thirteen percent of respondents are concerned about the price of streaming platforms, while 9% point to access to movies that were recently in theaters, 9% also want “ad-free shows," and another 9% want at least a choice between ad-free and ad-supported options.

Consumers are “maxed out” when it comes to the overall cost of TV -- which respondents say averages $82 a month -- the study finds.

Respondents say they would pay a maximum of $87 for all TV content.

This research comes from a June 2024 survey among 1,600 U.S. TV consumers ages 16-74 with broadband.