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<\/div>\nAs viewers increasingly adopt ad-supported streaming, they find the ad experience is better than it used to be. Hub\u2019s semi-annual \u201cTV Advertising: Fact vs. Fiction<\/a><\/u><\/strong>\u201d\u00a0<\/span><\/strong>study shows that more viewers than ever are opting to save money by accepting ads, and fewer viewers are saying they cannot tolerate TV ads. \u00a0These trends are even more pronounced among viewers under age 35.<\/p>\n Findings from Hub\u2019s \u201cTV Advertising: Fact vs. Fiction \u2013 Wave 10\u201d<\/em>\u00a0<\/span>include:<\/p>\n Viewers don\u2019t mind watching TV with ads the way they used to, and that leads to greater ad acceptance.<\/strong><\/p>\n The shorter and less frequent ad breaks in many streaming services are better for viewers than the old heavily commercialized linear TV experience.<\/p>\n A better ad experience leads to a greater likelihood to accept ads to save on subscription costs. Over the past four years, as more services like Netflix, Amazon Prime Video, and Disney+ have introduced ad-supported tiers, the choice to accept ads to reduce cost has risen dramatically.<\/p>\n Over the same four-year period, the number of viewers who \u201ccan\u2019t tolerate ads\u201d has gradually declined as well.<\/p>\n Economic anxiety persists among viewers, and it\u2019s affecting how they manage their TV subscriptions.<\/strong><\/p>\n Put those sentiments together, and many people are expecting to reduce spending on TV.<\/p>\n Ad-supported subscription tiers offer an opportunity to retain budget-conscious viewers.<\/strong><\/p>\n With so many viewers willing to reduce their spending on TV services, lower cost ad-supported subscriptions can keep many of them from canceling.<\/p>\n Viewers\u2019 awareness of the major streamers\u2019 ad-supported has continued a gradual increase over the past two years, and a majority now know that Hulu, Amazon Prime Video, Netflix and Peacock provide lower cost services with ads.<\/p>\n There has also been a corresponding increase over the past year and a half of viewers opting for a strictly ad-supported mix of subscriptions.<\/p>\n Part of that increase in ad-supported-only viewing is driven by tier switching. There has been a significant increase in the past eighteen months in viewers migrating between ad-free and ad-supported service tiers, with a third now saying they have done so.<\/p>\n Not surprisingly, given the degree of economic uncertainty among viewers, and their desire to reduce spending, tier switching is mainly about saving money. Those sentiments are significantly more prevalent among viewers than they were in June 2024.<\/p>\n But there is underlying good news for video streamers: TV still delivers great value.<\/strong><\/p>\n Although TV subscription costs are rising, and viewers are looking to cut costs, the ability to manage their array of services allows them to derive significant value from TV.<\/p>\n Viewers 18-34 and those with kids, who are the most likely to switch to lower cost subscriptions, are the most likely to see value in their TV services. Once again, this shows if viewers are comfortable with the price point of a subscription, they value it.<\/p>\n Economic anxiety has viewers reconsidering their TV subscriptions, but services that continue to deliver value can minimize cancellations.<\/strong><\/p>\n U.S. TV viewers have been hit hard by inflation and worries about a potential recession over the past several years, during and post-pandemic. The continued uncertainty brought on in 2025 by new tariff policies and other disruptions still has consumers concerned.\u00a0 TV subscriptions are not excluded from viewers\u2019 consideration when they are trying to keep rising household costs in line.<\/p>\n But the strategic decision by many streamers to offer lower priced ad-supported subscriptions has turned out to be a smart hedge against cancellations. Many viewers, especially those who are younger or have kids are finding the ad experience is better than it used to be, and opting for ads to save money is a good deal.<\/p>\n \u201cAs we head into 2026, TV viewers continue to worry about the direction the economy is headed,\u201d said Mark Loughney, Senior Consultant at Hub. \u201cBut for TV and video streaming providers, the news is better. By giving viewers the choice of accepting ads for cost savings, they are delivering great value compared to other entertainment. Viewers are figuring out for themselves the optimal mix of ad-supported and ad-free services that fit within their budgets. If the streamers continue to provide an ad experience that\u2019s better than traditional TV, they will deliver good value and minimize churn.\u201d<\/p>\n These findings are from Hub\u2019s 2025 \u201cTV Advertising: Fact vs. Fiction<\/a>\u201d report, based on a survey conducted among 3,000 US consumers age 14-74, who watch at least 1 hour of TV per week. Interviews were conducted in November 2025 and explored consumers\u2019 attitudes toward advertising, how it differs across video platforms, and how ad strategy affects viewer engagement.\u00a0 A free excerpt of the findings is available on\u00a0<\/span>Hub\u2019s website<\/a>. This report is part of the \u201cHub Reports\u201d syndicated report series.<\/p>\n Download the press release charts\u00a0<\/span>HERE<\/a>.<\/strong><\/p>\n Since 2013, Hub Entertainment Research has measured and tracked how technology changes the ways consumers discover, choose and consume entertainment content. We work with the largest networks, pay TV operators, streaming providers, and studios. For more information, visit our\u00a0<\/span>website<\/a> and subscribe to our newsletter at hubintel.substack.com.<\/p>\n\n
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