The Rise of Dual Revenue Streams in Premium SVOD

More streaming services are offering ad-supported plans -- just this week AMC was the latest to announce its offering -- as the role of advertising continues to grow in importance to Premium SVOD Services and their profitable growth strategies. In 2020, only one in five new Gross Adds were to ad-supported plans; last year, it was nearly one in three.

It's clear from the popularity of ad-supported plans among the Services which offer them that consumers will opt into advertising with the right offer. The four Services that have had ad-supported plans since their inception—Peacock, Hulu, Paramount+, and Discovery+—each have at least 43% of Subscribers on the ad-supported option.  

And ads are gaining ground. The proportion of 2022 Gross Adds (i.e., new customers) who selected the ad-supported option is higher than the existing Subscriber base for six of the seven Premium SVODs.

More insights on the U.S. Premium SVOD market are available in our latest State of Subscriptions Report. If you're interested in reviewing the full report, send us an email and we'll share a copy with you.

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Brendan Brady is a Content Strategy Associate at Antenna, a measurement and analytics company providing insight into purchase behavior and subscription metrics across the new media landscape.