35% of U.S. streamers want to cancel their subscription. Here’s how CTV ads keep them tuned in.

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A look at streaming numbers reveals the latest trends in consumer connected TV viewership. While the channel is growing in popularity, the cost of subscriptions — and the resulting popularity of ad-supported subscription tiers — presents an opportunity for advertisers.  

Despite the overwhelming growth of streaming, 35% of Americans say they either canceled or considered canceling a streaming subscription in the past year.¹ This indicates fierce competition for consumer dollars — and providing an excellent viewing experience is critical. 

Ads play a central role in this equation. 

Our updated findings reveal compelling trends in consumer streaming behavior and indicate the growing importance of ads in CTV as consumers shift toward ad-supported subscription tiers. 

The number of Americans who don’t have a cable TV subscription service has increased 33% since 2020. Instead of linear TV, Americans are turning to subscription-based streaming to watch TV content. Over half of Americans now subscribe to more than one streaming platform, with 26% subscribing to four or more platforms.¹ 

Cost is a main factor in subscription churn 

As more viewers subscribe to multiple streaming platforms, cost can become a concern, and that concern can lead to cancellations. 

While 49% of survey respondents said they subscribed to an additional streaming service in the past year, a significant portion expressed concerns about the cost of their subscriptions. 

Nearly a quarter of Americans said they reevaluate their streaming services on a monthly basis, and 38% cite cost as the main reason for unsubscribing from streaming services.¹ 

This can be good news for advertisers, as CTV publishers look for additional ways to monetize their content outside of the straightforward pay-to-play model. Consumers, too, are growing more interested in cost-saving subscription tiers: 41% state they would opt for a free service funded by ads or a cheaper option with some ads.¹ In January, Netflix reported that more than half of its new subscribers are now signing up for the ad-supported tier.

Ad-supported tiers help streamers reduce costs for viewers. This benefits the entire CTV ecosystem by giving audiences more opportunities to watch while growing revenue for publishers and putting advertisers in front of existing and prospective customers. 

As ad-supported subscription tiers grow in popularity, advertisers and publishers alike have an opportunity to be laser-focused on user experience. 

<sub>Sources:
1. The Trade Desk Intelligence x Appinio, U.S. Streaming Behaviors, July 2024.</sub>