The U.S. streaming market is witnessing a major shift toward ad-supported video on demand (AVOD), with an estimated 100 million ad-supported premium SVOD subscriptions recorded by the end of Q1 2025, according to data from Antenna. This marks a staggering 89% increase from just 53 million subscriptions two years ago, signaling a new era in monetization strategies for streaming platforms.
Antenna’s analysis attributes the surge to three key subscriber segments: new users, returning users (Win Backs), and existing users switching from ad-free plans (Traders). Among all ad-supported premium SVOD subscriptions in the U.S., a dominant 65% are new users who had not previously subscribed to the service. Win Backs accounted for 23%, while only 11% were Traders.
However, Netflix presents a contrasting user composition. The platform’s ad-supported growth is largely driven by existing customers trading down from its ad-free tier. In fact, Traders make up 40% of Netflix’s ad-supported subscriptions — a significant deviation from the 6% average across other premium SVOD services. New users represented 44% of Netflix’s ad-supported base, well below the 69% average for other platforms. Meanwhile, Netflix’s Win Backs made up just 16%, compared to 25% for competitors.
These insights suggest Netflix is leveraging its existing customer base to drive adoption of its ad tier, rather than relying primarily on new or returning subscribers. In contrast, other platforms are focusing more heavily on acquiring new viewers to grow their ad-supported offerings.
The data underscores a broader trend reshaping the subscription video market: as consumer budgets tighten and competition intensifies, ad-supported tiers offer a more affordable entry point while opening up new revenue streams through advertising. The continued expansion of these models is expected to play a central role in how platforms balance profitability and growth in the coming years.