Ad-supported 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 data from Antenna.

Key findings from the report reveal:

• 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 subscriptions has increased from 28% in Q3 2022 to 43% in Q3 2024, with a notable jump from 39% to 43% between Q2 and Q3 2024 alone.

This trend raises questions about similar models in music streaming. While Spotify leads with 402 million ad-supported monthly active users (MAUs), this growth is primarily from emerging markets.

Important considerations for music streaming:

• 55% of Spotify's total MAUs are from regions outside Europe and North America
• Apple Music, without an ad-supported tier, reportedly has more Individual subscribers in the U.S. than Spotify
• Major music labels are showing interest in charging for ad-supported listening in established markets
• Subscription streaming growth is slowing at major services
• Data suggests a potential decline in Spotify's Individual subscribers in the U.S.

These trends may influence streaming platforms' pricing and tier strategies heading into 2025, potentially leading to new streaming-compensation models and industry adjustments.

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