It has not been long since Netflix released a cheaper, ad-supported streaming tier for customers,
but it has already had a sizeable impact on how UK audiences are consuming their TV content.
According to BARB data, the number of UK homes that are subscribed to ad-tiers for streaming
services has climbed for every major streaming service. Disney+ and Amazon Prime ad-tiers have
jumped by 0.3 and 0.1 million households respectively between Q3 and Q4 2024. However, the
biggest indicator that we are seeing a large-scale shift towards cheaper streaming options is
reflected within Netflix, as 1.3 million extra households have recently opted to join their ad-tier.
These figures reflect the financial demands of UK consumers, as SVOD platforms generally offer
streaming services at a discount when compared to the “classic”, ad-free tier. However, it also
suggests that subscription services are listening to and understanding consumer needs.
the7stars’ latest thought leadership, Giving Media Back Its Mojo, notes that the driving force
behind consumer impact is showing up for your audience in ways that make them feel heard and
understood, beyond the brand’s main output. As such, trading off uninterrupted viewing time for
a cheaper payment plan has successfully tapped into adjusting consumer needs.
This agility has paid off in more ways than one. Firstly, the growth of consumers signing up for
ad-supported SVOD services is indicative of grassroots changes in the UK media consumption
landscape, which continues to fragment away from traditional linear TV.
Beyond this, streaming platforms have seen a boost to their consumer perception ratings since
the announcement of ad-tiers. Media Strategy and Research specialists MTM released their own
bespoke tracking data, showing that people now had a more positive perception of all major
streaming services. Following the introduction of ad tiers, all video subscription services tested
saw an increase in positive value perceptions of between 6-9 percentage points.
These changes have also cemented SVOD’s place as an essential service for many households,
with 43% of Netflix’s audience stating that they couldn’t live without it. Amidst a tough economic
climate, this allows media subscriptions to stay top-of-mind for price-conscious consumers.
The current trends are promising for Adland, offering a reputable alternative to linear TV planning.
While currently streaming services with ad-tiers aren’t bringing in the same viewing figures as the
big broadcasters, the upward trajectory of ad-tiered viewing, coupled with increasingly positive
perceptions of the services themselves, indicate that this shift could be the start of longer trend.
