Gen Zers would trade more ads for lower streaming costs as prices rise

The news: As streaming subscription prices rise, consumers are becoming more open to ad tiers.

  • 36% of US consumers would be willing to see twice as many ads if that meant lowered streaming and subscription service costs, per Bango’s Subscription Signals 2026 report.
  • Younger generations are even more tolerant—nearly half of millennials (46%) and Gen Zers (49%) are willing to watch double the ads if their subscription costs less.

Consumer attitudes aren’t tied to any specific service, either.

  • About half of the users of Apple TV (52%), Disney+ (48%), and HBO Max (47%) would accept more ads in exchange for a lower cost.
  • 44% of Netflix users and 40% of Prime Video users would also accept more ads if prices were reduced.

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.

  • 41% of Gen Zers are spending more than they can afford on subscriptions, nearly double the number of the general population (23%). That financial strain could lead to more subscription cancellations.
  • About 8 in 10 Gen Z streamers have signed up for a subscription within the past year to watch a specific piece of content and then canceled or paused that subscription, per CivicScience.
  • 20% share passwords to save money, meaning platforms are leaking potential subscription revenues despite pricing changes, per Bango.

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.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.

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