Streaming Users Could Save $366 per Year by Switching to Ad-Supported Streaming; Average Customer Has 5.6 Services
The data from Parks Associates reveals that while streamaing costs are rising, users still have options for saving money.
It’s not all that surprising that users are somewhat hesitant to fully embrace ad-supported streaming. After all, streaming was first sold to users on the promise that it was different from cable because it did not force users to watch mind-numbing commercials. Netflix has had real trouble attracting customers to the ad-supported plan it brought to market nearly a year ago, and is just now starting to see improved subscriber metrics on that plan.
- New data from Parks Associates reveals that users could save $366 per year by switching to ad-supported plans.
- The data also shows that the average streaming household is subscribed to 5.6 services.
- All of the top streaming platforms have an ad-supported tier available or soon to come to market.
How Much Can You Save with Ad-Supported Streaming?
The rising costs of streaming seem to be pushing more and more users toward commercials, however. A report from August showed that ad-free streaming costs have risen 25% in the past year alone, and all of the major streaming services like Disney+, Hulu, Max and Netflix have either raised prices or warned customers that such increases were coming soon.
Data revealed by Parks Associates shows that streaming customers who are willing to go ad-supported can bring down their streaming costs meaningfully. The ad-supported plans of top streaming platforms are $5.44 cheaper than their ad-free counterparts on average, and users can save up to $366 per year by transitioning to ad-supported tiers, according to Parks’ numbers.
Parks also reported that the average streaming household now subscribes to 5.6 services. Samba TV’s “State of Viewership” report released in August showed that one in three American streaming users were signed up to a free ad-supported streaming service like Pluto TV, The Roku Channel, or Tubi.
Which Streamer Has the Most Ad-Supported Customers Already?
Some streaming customers are already following Parks’ advice regarding the lower cost of ad-free streaming. This can be illustrated on no better platform than Hulu; a report released in August by Ampere Analysis shows that 90% of Hulu customers are already using the ad-supported plan. Peacock and Paramount+ also see subscribers opt for their plans with commercials at a rate of more than 70%.
Hulu’s 90% could actually rise in the next few months, as well. The streamer recently raised the price of an ad-free subscription from $14.99 per month to $17.99, making it one of the most expensive streaming plans without commercials on the market. Max, Peacock and Paramount+ are all cheaper to stream without ads, despite the fact that each of those streamers offers a wide variety of live professional sports, which Hulu does not.
That could lead to a new segment of Hulu customers converting to save a little dough. Switching from ad-free to ad-supported could help Americans pocket more than a little extra money every year, as the new figures released by Parks Associates make clear.
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