Ad-Supported Streaming Dominates US Market Amid Stagnant Spending

Wednesday, 25 March 20266 min read3 views

US household spending on streaming video services remained static at $69 per month in 2025, mirroring the previous year's figures. Concurrently, ad-supported streaming tiers experienced significant growth, now accounting for 68% of subscriptions, as consumers seek more cost-effective options.

What Happened

•US households maintained an average monthly spend of $69 on streaming video services in 2025, consistent with 2024 (Variety, 25 March 2026).
•Ad-supported streaming service subscriptions saw double-digit growth in the past year (Variety, 25 March 2026).
•Approximately 68% of US streaming consumers now subscribe to ad-supported tiers (Variety, 25 March 2026).
•The data suggests a consumer preference for lower-cost options over increasing overall streaming expenditure (Variety, 25 March 2026).

Why It Matters for NZ Marketers

•New Zealand consumers are likely to exhibit similar price sensitivity, driving demand for more affordable, ad-supported streaming options.
•NZ media buyers should anticipate a growing inventory of local and international ad-supported video on demand (AVOD) platforms, requiring new planning strategies.
•Local streaming providers in NZ may need to accelerate the introduction or enhancement of their ad-supported tiers to remain competitive and attract subscribers.
•This trend could shift advertising budgets from traditional linear TV to connected TV (CTV) and AVOD platforms in New Zealand.

Strategic Implications

•Marketers must develop creative strategies tailored for shorter, more frequent ad breaks common in AVOD environments.
•Brands should explore advanced targeting capabilities offered by streaming platforms to reach specific NZ audiences more effectively.
•Content creators and advertisers need to understand the nuances of audience engagement on ad-supported vs. ad-free tiers.
•Consider diversifying media spend to include emerging ad-supported streaming channels to capture audiences migrating from premium tiers.

Future Trend Signals

•Further proliferation of ad-supported tiers across all major streaming services globally, including those operating in NZ.
•Increased investment by streaming platforms in ad tech and measurement capabilities to attract advertiser spend.
•Potential for hybrid subscription models that offer varying levels of ad exposure and content access.
•A continued shift in consumer perception, normalising advertising within streaming content as a trade-off for lower costs.

Sources

U.S. Household Spending on Streaming Video Services Remains Flat at $69 per Month, as 68% Now Pay for Ad-Supported Tiers — Variety

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