The U.S. streaming market has undergone a fundamental transformation, with ad-supported tiers now driving the majority of subscriber growth and reshaping consumer behavior. According to Antenna’s May 2025 State of Subscriptions: Adds & Ads report, ad-supported subscriptions now account for 46% of all Premium SVOD subscriptions, up from 39% a year ago and just 33% in 2023. This growth reflects a broader shift in consumer preferences and economic pressures, as viewers seek more affordable ways to access premium content without sacrificing variety.
Antenna estimates that there are now nearly 100 million ad-supported streaming subscriptions in the U.S., excluding Amazon Prime Video. In the past four years, 75% of all streaming subscribers have tried an ad-supported plan. In terms of momentum, ad tiers have played a dominant role, driving 71% of the net subscriber additions across Premium SVOD services over the past nine quarters. In Q1 2025 alone, ad-supported subscriptions accounted for 57% of gross adds, despite a slight year-over-year dip following the exceptional boost from Peacock’s exclusive NFL Wild Card broadcast in Q1 2024.
Consumer adoption is not only widespread but also demographically neutral. The report confirms that ad plan subscribers show virtually no demographic skew in terms of age or income. Furthermore, loyalty between ad-supported and ad-free subscribers is nearly identical. A cohort analysis tracking users over a nine-month span found that 42% of ad-supported subscribers remained active, compared to 43% of their ad-free counterparts. Monthly churn rates do vary slightly—4.96% for ad-supported plans versus 4.13% for ad-free—but these fluctuations have narrowed significantly over the past year.
One of the most telling indicators of consumer preference is the surge in “Ad Managers”—users who have opted into both ad-free and ad-supported plans over time. This group now represents 41% of all users who have faced a choice between ad tiers, and 46% when excluding users who haven’t had to make a choice. Their ranks grew 29.6% year-over-year, adding 12.1 million people. Meanwhile, 86% of users who have faced multiple ad-tier decisions have chosen an ad plan at least once, underscoring a growing openness to mixed viewing models.
The composition of ad-tier subscribers also highlights key growth dynamics. Among current ad-supported subscribers, 65% are brand new users to the service, 25% are returning users (win-backs), and 11% are existing users who downgraded from ad-free plans. This demonstrates how ad tiers are lowering the barrier to entry and expanding the overall market, not just shifting users between pricing models.
“This is a win for all stakeholders,” Antenna’s leadership states in the report. “Streamers can scale with dual revenue models, brands gain back their reach in premium video, and consumers can stretch their budgets further by accepting ads on some services.”
Ultimately, the data affirms that ad-supported streaming is no longer a fallback or secondary option—it’s a mainstream choice driving the next phase of growth in the subscription economy. As the market continues to mature, the balance between price, content, and user experience will define the strategies of the most successful platforms.
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