Ad-supported streaming services, long touted as a cost-effective alternative to subscriptions, may be losing their allure with one of the most coveted demographics: Gen Z. According to a recent analysis by eMarketer, nearly 40% of US adults aged 18–26—also known as Gen Z—report they do not use any ad-supported streaming platforms, including both AVOD (advertising-based video on demand) and FAST (free ad-supported streaming television) services. This disengagement contrasts sharply with older generations, where adoption of ad-supported platforms has been growing steadily.
eMarketer’s research underscores a significant generational gap in viewing habits. Among millennials (ages 27–42), only about 25% say they don’t use ad-supported streaming, and among Gen X (43–58) and boomers (59 and older), the number drops even lower. This suggests that Gen Z is uniquely resistant to traditional advertising models, opting instead for ad-free premium subscriptions or alternative platforms like YouTube, TikTok, and other short-form content hubs that allow them to control their experience more directly.
Deborah Williamson, principal analyst at eMarketer, emphasized the implications of these findings: “The assumption that younger viewers are more willing to trade their time for free content does not hold true for Gen Z. They have grown up with more control over their media, and many simply refuse to tolerate interruptions.”
While overall AVOD and FAST usage has risen in the US—thanks in part to inflation-driven consumer belt-tightening and increased content offerings—the reluctance of Gen Z to engage with ad-supported platforms could limit future growth. The report notes that as of 2025, over 70% of US adults report using some form of AVOD or FAST service monthly, but the gap with Gen Z indicates that these platforms may need to rethink their value proposition if they hope to win over this younger audience.
Williamson added: “To capture Gen Z, ad-supported streamers will need to innovate—not just by offering more relevant or skippable ad formats, but by reimagining how advertising fits into the content experience altogether. This generation expects personalization, minimal disruption, and, above all, value.”
For advertisers and streamers alike, the findings serve as a warning and an opportunity. As AVOD and FAST continue to expand, the industry will need to address Gen Z’s skepticism head-on—likely with more creative, interactive, and less intrusive advertising solutions.