
When it comes to hot growth areas in streaming, ad-supported tiers top the list of accelerants.
That’s largely because so many streamers have either launched them over the last couple years - or have raised prices on their ad-free tiers just enough to nudge millions over to cheaper ad-supported options. The shift has been dramatic. Disney CEO Bob Iger disclosed during the Q3 earnings call that 60% of the company’s new streaming sign-ups opt for available ad tiers compared to ad tiers making up only 37% and 30% of its existing U.S. and global DTC base, respectively.
Those percentages will gradually rise as most new customers skew the split (One Touch Intelligence’s StreamTRAK video intelligence service estimates Disney’s U.S. ad tier base ticked up to 38% by year-end 2024). But it all varies by provider based on market trends.
Take Netflix, which had lived a staunchly ad-free existence before launching an ad tier in November 2022. Our analysts estimate its soft-launch approach means only 8% of its subs currently take the ad-supported option. But it’s the reverse for Amazon, which in January 2024 converted its entire Prime Video service to an ad tier: We estimate only 10% of its subs have since opted out.

As the market shifts, OTI’s new DEEPDive report “Ad Tier Rising” suggests ad tiers will likely continue to grow for several quarters before they reach any sort of equilibrium, especially if streamers continue to raise ad-free tier prices and drive more consumers to ad-supported options. Ad tier subs could soon exceed half of total streaming customers. Combine current paid trends with rising viewership of free AVOD and FAST channels, and the ad-free streaming club will get even more exclusive.
New “freebie” bundles of ad tiers that now come with select linear TV packages no doubt amplify these trends, but also impactful are lower ad loads than at any time in the history of TV. While linear shows might approach 20 minutes of ads per hour, our audits suggest the SVOD experience averages a paltry three minutes per hour, with outliers like Amazon and Netflix dipping well under one minute per hour. This could stem from many factors, but better algorithms and contextual targeting likely translate to fewer - but more effective - ads. Loads on FAST channels also remain below linear TV norms, but not by nearly as much as paid AVOD, averaging 13.3 minutes per hour as of Q4 2024 (up from 11 minutes per hour in Q1 2023). That gradual rise corresponds to considerably less unfilled ad time, which declined more dramatically from a whopping 42% in Q1 2023 to only 14% at year-end 2024, according to our audits.

As everyone heads into the 2025 Upfronts, the rise of multiple streaming ad tiers means Madison Avenue enjoys more options than ever. Make no mistake: This is still a buyer’s market. The competition to woo brands will be fierce. And the stakes remain high. But one thing remains clear: In 2025, more consumers than ever will consume ads on streaming platforms - and that’s only expected to grow in the coming years.
(For more on how advertising is changing the face of streaming, check out OTI’s “Ad Tier Rising” report here.)
Michael Grebb is Senior Vice President and Lead Analyst for One Touch Intelligence, which provides market intelligence and industry analysis services for leading companies in the media and telecommunications space. The One Touch Intelligence StreamTRAK series is a complimentary service offering industry professionals insights and context around developments in the digital media sphere.
Industry Voices are opinion columns written by outside contributors — often industry experts or analysts — who are invited to the conversation by StreamTV Insider staff. They do not necessarily represent the opinions of StreamTV Insider.