It was less than four years ago that major streamers including Disney+ and Netflix introduced ad-supported paid tiers to their subscription streaming offerings.
Since then, streaming has matured in North America, ad tier options and capabilities have expanded and research firms now anticipate the streaming service industry will increasingly rely on advertising to drive growth in the years to come.
Per new forecasts from Ampere Analysis, across both advertising and subscription revenues, ad tiers are now the dominant monetization model for streaming services in North America.
Ampere estimates that North American streaming ad-supported video tier revenue will exceed $45 billion this year and expects ad tiers to account for 54% total subscription streaming service revenues in the region by the end of 2026. That’s up from $12.2 billion in ad tier revenue in 2022.
Part of the benefit and revenue growth from ad tiers comes from expanding reach to more consumers and driving subscription revenue with additional or retained users thanks to a lower price, but also key is that ad tiers give service providers a new additional revenue stream via the advertising itself and related dollars from brands and sponsors.
Ampere’s ad tier revenue estimates include both the subscription revenue and straight advertising revenue piece for OTT providers. But as the industry matures and subscriber growth slows, advertising itself looks to be a main force underpinning growth for the North American subscription streaming service market in coming years.
Ampere estimates that advertising revenues alone will exceed $18 billion in North America this year, accounting for more than one-fifth of total subscription OTT revenues, for the first time.
North America dominates the global ad-supported subscription streaming market, accounting for nearly 60% of global revenue. Here, according to Ampere, platforms benefit from stronger subscription ARPU, higher CPMs, a more mature CTV advertising ecosystem and greater acceptance for ads.
Still, as other regions also experience decelerated subscriber growth, North America “is suggesting the direction of travel for the global streaming market,” the analysis stated.
Separately, PwC’s June Entertainment & Media Outlook 2026-2030 stated that “ad tiers are key growth drivers for streamers” in the U.S.
The firm estimates that in 2025 the U.S. reached 533.7 million OTT subscribers, growing at a CAGR of 9% since 2021. It attributed the success of ad tiers as an example of top-line growth, with U.S. streaming subscriber numbers set to still grow and reach 601.8 million by 2030 but at a much slower CAGR of 2.4%.
And while subscriptions are still the dominate engine of revenue for streamers, with growth set to slow and consumers’ eyes increasingly on wallets, revenue from ad-supported streaming is the second largest revenue driver within the segment, per PwC. Ad-supported streaming generated $23.9 billion in 2025, according to the firm, including that on paid ad tiers and non-subscription based free ad-supported streaming or FAST (the latter which Ampere’s estimates do not include as the firm only looked at paid subscription streaming tiers with ads).
PwC projects U.S. advertising-supported streaming revenue to almost double over the forecast period, reflecting a CAGR of 10.4% between 2025 and 2030 to reach $39.2 billion.
PwC’s U.S. commentary also laid out strategic reasoning for ad-supported tiers for subscription streamers:
“A key consideration for streamers operating both ad-supported and subscription only tiers is that these models serve two strategic functions. First, ad-supported plans provide consumers with the ability to choose a streaming experience that aligns with their viewing preferences as well as their budget without materially undermining demand for higher priced premium tiers. Second, they create an additional monetization pathway by generating advertising revenue from users who might otherwise remain outside the paid ecosystem,” PwC explained.
“Within this framework, some operators can reach a longer-term equivalence point where the combined subscription and advertising revenue per ad tier user approaches or matches the value of a standard subscription subscriber, though this typically functions as an optimization target rather than a prerequisite for launching such tiers,” the firm continued.
As for those advertisers leaning in, Ampere says consumer goods and retailers are leading the charge on streaming. Proctor & Gamble, Amazona and Walmart accounted for 22% of U.S. subscription OTT advertising impressions so far in 2026.
Amazon adds ad-supported scale, Netflix expands capabilities
Amazon Prime Video made a swift and significant pivot into ad-supported streaming in early 2024 when it automatically converted all existing subscribers of its service to an ad-supported plan and required users to opt-out by canceling or paying more for an ad-free plan.
Per Ampere, on the back of that decision, Prime Video now leads the North American ad-supported subscription market, with revenues expected to exceed $14 billion in 2026. In early 2025 Prime Video said monthly ad-supported reach had exceeded 130 million.
Amazon contrasts to Disney+ and Netflix approaches to entering ad-supported streaming, which each introduced respective ad tiers in late 2022 as new offerings that were priced notably lower than existing ad-free plans.
PwC in its report noted that Netflix, like many streamers, “has experienced trouble attracting advertisers since the launch of its ad-tiers with more ad yield available than what has been sold…”
However, PwC wrote that in 2025 “there has been an upswing in CPM and ad-loads” and the SVOD, like others, “invested in becoming even more attractive destinations for advertisers.”
Netflix on its recent Q2 earnings call didn’t disclose the number of subscribers on its plan with ads but said building out the business continues to be a top priority and the company remains on track to double ad revenue and deliver approximately $3 billion in 2026.
Some of the areas Netflix has invested in to boost appeal to advertisers include AI-powered tools and workflows, the Netflix Ads Suite and broader programmatic capabilities.
The company’s Q2 letter to shareholders cited “strong interest” from advertisers in Netflix’s live events lineup including the Women’s World Cup, NFL, WWE and MLB, among others, alongside a breadth of entertainment titles.
And Ampere’s latest data signaled that ad-supported subscription tiers are also influencing the types of content being commissioned for North American streamers.
Streamers seek content that encourages habitual watching
As subscriber growth slows and streamers focus on profitability, advertising revenue is one piece of the picture – but to attract those dollars also means the need for engagement and subscribers spending time, preferably regularly, with a service or platform.
Ampere’s research finds that the six largest global streamers doubled first-run and renewal orders for unscripted content in North America between 2020 and 2025. The firm said this signals increasing investment in shows with regular releases that encourage habitual viewing.
“Advertising has become a fundamental part of streamers' business models, changing both how success is measured and the content they commission. As subscriber growth slows in mature markets, the focus has shifted towards driving engagement and habitual viewing,” stated Rory Gooderick, research manager at Ampere. “The challenge now is to increase monetization without compromising the premium viewing experience that these streamers have spent years cultivating.”