The news: As streaming subscription prices rise, consumers are becoming more open to ad tiers.
Consumer attitudes aren’t tied to any specific service, either.
All of these platforms have raised subscription prices within the past year without adding substantial new features, which makes it unlikely that prices will indeed go down.
Digging in: Ad-supported tiers stand to gain as consumer tolerance for ads in exchange for lower prices grows. It could unlock new inventory and monetization opportunities for brands if streamers add more ad tiers while helping delay full market saturation.
However, price sensitivity and increased churn may fragment audiences and complicate campaign scale.
Implications for marketers: Ad-supported subscriptions are becoming a pressure valve to relieve users’ price sensitivity. Increased use of ad tiers—and potentially new offerings if streamers add them—can expand audiences for advertisers while subscribers stay in the streaming ecosystem. However, a more splintered and less predictable streaming landscape is emerging, where reaching audiences and measuring audience data will become more complex.
Marketers should keep media mixes diversified and media strategies nimble to avoid relying on a single streamer and to capitalize on consumers’ openness to more ads across multiple services.
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