Streaming services boost ad minutes as users migrate to cheaper ad-supported plans

Ampere Analysis reports that ad minutes per hour on the nine most-watched US streaming services climbed 18% from January through August, driven by a surge in ad-supported subscriptions amid rising subscription costs. All platforms except Prime Video logged higher ad loads; Paramount+ leads with roughly nine minutes per hour, whereas Netflix, despite the steepest relative rise, remains under 2.5 minutes. Analysts such as Brandon Katz attribute the trend to higher customer-acquisition costs and investor pressure to maximize advertising revenue.

Hernan Lopez notes that management teams are being urged to capture greater streaming retail value and ad margins. Antenna data shows 11% of ad-supported subscribers switched from ad-free plans in Q1, and nearly 60% of new sign-ups now choose ad tiers, indicating consumer willingness to tolerate ads for lower prices.