Western Europe: Ad‑tiered plans now drive a quarter of SVOD subscriptions

Ad‑supported tiers have now captured a full 25 percent of subscription video‑on‑demand (SVOD) subscriptions in Western Europe, according to the latest Ampere Analysis report. In the first quarter of 2025 nearly 70 million users subscribed to ad-supported plans, marking a significant shift in consumer adoption patterns. These tiers are largely driven by platforms such as Amazon Prime Video, which account for the majority of that subscriber base.

The emergence of ad tiers reflects evolving monetization strategies within the streaming industry. As growth in traditional ad-free subscriptions slows, more platforms are embracing ad-supported offerings to reignite subscriber momentum and diversify revenue streams. Ampere Analysis highlights that in Western Europe, ad-tier adoption has become critical to broader SVOD growth strategies, with streamers positioning hybrid models to attract cost-sensitive consumers.

While the report focuses primarily on market share and subscriber volumes, it also underscores the competitive landscape in which ad tiers are gaining ground. Industry attention is now turning to retention dynamics and pricing elasticity among ad-based subscribers, with ad-supported tiers expected to play a growing role in stabilizing churn and improving lifetime value.

The shift toward ad-tier subscriptions signals both opportunity and pressure: platforms capable of scaling advertising-supported services while balancing engagement and content quality stand to benefit most. With ad tiers now accounting for a significant slice of the Western European SVOD market, Ampere’s insights suggest that future streaming growth will depend heavily on platforms’ ability to execute hybrid monetization models at scale.

As ad-supported subscriptions continue to gain traction, especially among price-conscious consumers, traditional ad-free dominance is eroding. Western European streamers now face a turning point: adapt to the hybrid model—or risk stagnation in a market increasingly defined by flexible, accessible streaming options.