Ad Tolerance On The Rise To Support Subscribers Having Multiple Streaming Services 

by | Sep 1, 2023

It comes as no surprise to those in the streaming ad industry that ad-supported streaming is profitable. The moment we were liberated from the hefty price tag of a monthly cable bill, streaming services adjusted their businesses with a subscription-based model. However, with the number of subscriptions out there, fatigue is setting in, and the number of subscriptions to cover Disney, Netflix, Hulu, Max, etc., are now almost the price of traditional cable. The whole point of cord-cutting was to avoid spending so much money every month on content that you don’t watch. Which brings us back to where we started, or does it? 

If we really want to go back to where we started, we go back to commercial-supported viewing. The modern-day version being ad-supported streaming.  

Today’s news is filled with subscription pivots to ad-supported models, providing low-cost options for the subscription-weary. According to Admonsters, by the end of Q1 2023, ad-supported streaming made up one-fourth of SVOD subscriptions. 

Disney just announced a significant loss in their streaming business but found that the cheaper ad-supported tiers are actually profitable. Ultimately, It’s the ad-free tiers that rely on ever-increasing prices that create huge losses. 

More recently, Cox Media Group announced a hyper-local news Fast channel aptly named Neighborhood TV. This localized content is the perfect forum for hyperlocal advertisers looking to target their customers beyond traditional print. 

According to a June survey by Hub Entertainment Research, fifty-nine percent of consumers say they are willing to watch ads if it saves them 4-5 dollars a month in subscription fees, with just under forty-one percent stating they are willing to pay that same amount extra a month to avoid ads.  

The fact is, people are used to watching ads on TV and they are fine with it as long as it’s not an overloaded amount. 

And with “VOD Fatigue” setting in, consumers are spoiled for choice with too many subscription options. FAST channels give people a wealth of content they can afford in a lean-back environment that does not put a dent in their wallet.  

For Advertisers, FAST is a chance to target their audience in a way that traditional TV never could. Because of the wide variety of channels and nostalgic shows attaining mass viewership 24/7, premium audience rea

ch is no longer just for prime time.