Ad-supported video-on-demand (VOD) subscriptions are experiencing significant growth in the U.S., with ad-supported tiers now accounting for 43% of all subscriptions among services offering ad plans as of Q3 2024, according to new data from Antenna.

Major streaming platforms are seeing substantial increases in ad-supported viewership:

• Netflix: 44% of new subscriptions are ad-supported
• Max: 39% of new subscriptions include ads
• Disney+: 62% of new subscriptions opt for ad-supported plans

The overall share of ad-supported VOD subscriptions has grown significantly:

• Q3 2022: 28%
• Q3 2023: 32%
• Q3 2024: 43%

This trend raises questions about potential implications for music streaming services. While Spotify maintains 402 million ad-supported monthly active users (MAUs), most growth comes from emerging markets, with 55% of total MAUs now outside Europe and North America.

Key considerations for music streaming platforms:

• Ad-supported listening generates less revenue than paid subscriptions
• Spotify's freemium model may be reaching saturation in established markets
• Apple Music, without an ad-supported tier, reportedly leads in U.S. Individual subscriptions
• Major labels are advocating for paid ad-supported listening in established markets

The growing preference for ad-supported video streaming, combined with slowing subscription growth in music streaming, suggests possible industry changes ahead for 2025, including potential streaming compensation restructuring.

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