Ad-supported tiers run by US streamers are set to earn more than US$10 billion in ad revenue in 2027, according to London-based research firm Ampere Analysis. 

Streamers that offer both ad-free subscription and ad-supported tiers are in a strong position to grow, says Ampere, because the latter can generate more revenue per subscription than the former. Ad tiers are also financially easier for consumers trying to maintain multiple subscriptions during a tough economic period. 

“Hybrid” ad tiers where consumers pay less for their subscription and see ads while streaming are becoming a bigger piece of the streaming picture, Ampere points out. In the US, there are currently more than 100 million subscribers on ad-supported tiers. 

The research firm analyzed all major streamers in the US to find out how many of their subscribers were on an ad-supported tier as of April 2023, and the numbers shook out like this: Hulu at 45 million (90% of its total subscribers); Peacock at 30 million; Paramount+ at 25 million; WBD at 12 million between Discovery+ and HBO Max (Max hadn’t launched yet); Netflix at over a million (2%); and Disney+ at 800,000 (2%).

As to whether ad tiers will ultimately help or harm streamers, especially when it comes to reaching kids and families, the question is still a bit of an open one. Last year, a quarter of parents in the US said they’d consider leaving Netflix if ads were introduced or prices increased, according to KidsKnowBest. 

While some households might not be loving ads, market research firm TVREV argues that advertisers are drawn to ad-supported kids and family content on streamers because COPPA-compliant platforms are required to vet all content and tell advertisers where and when ads will run, making it easier to gauge ROI.