As cord-cutting continues to rise and more people choose ad-supported streaming choices, the streaming landscape is changing dramatically.
The growing domination of streaming video services is highlighted by new Parks Associates data that shows 46% of US internet homes, or an astounding 56 million, have cut the cord with traditional pay TV. Additionally, 12% of homes have never had a regular pay TV subscription, making them “Cord Nevers,” which presents a special opportunity for streaming services.
In order to draw in and keep consumers, service providers are being forced to adjust by providing competitive pricing, bundling options, and hybrid monetization models. The emergence of free ad-supported streaming TV (FAST) and ad-supported video-on-demand (AVOD) services indicates the growing desire for less expensive substitutes for conventional subscription models.

According to Jennifer Kent, Vice President of Research at Parks Associates, “Cord Nevers represent a unique opportunity for streaming providers.” “Streaming services have managed to monetize a segment of the market that has not previously valued subscription video or has grown up in a streaming-first market, with different conceptions of what subscription video should be.” This market segment has, by definition, not paid for traditional pay TV.
The study also shows that users of popular streaming services are increasingly choosing ad-supported packages. A noteworthy 59% of subscriptions on eight major platforms, such as MAX, Netflix, Disney+, and Hulu, are for basic rates with advertisements as of Q3 2024. This pattern demonstrates how consumers are prepared to put up with advertising in return for cheaper streaming content access.

Many well-known services now use a hybrid business model, providing both ad-supported and ad-free options, in an effort to strike a compromise between customer preferences and profitability. Ad-based tiers benefit both companies and consumers by being more profitable for the former and less expensive for the latter.
According to Kent, “years of high inflation are driving consumers to pare down accordingly, while consumers are worn down from continued spending increases in streaming.” “This will only increase the competition between streaming providers and encourage the expansion of ad-supported subscription tiers and free ad-supported services.”
The struggle for streaming is still very much in play, and the growing popularity of ad-supported tiers marks a significant change. The capacity to successfully monetize ad-supported models will be essential for streaming platforms’ success in the years to come, as consumers continue to look for affordability and value.
Step into the ultimate entertainment experience with Radiant TV! Movies, TV series, exclusive interviews, live events, music, and more—stream anytime, anywhere. Download now on various devices, including iPhone, Android, smart TVs, Apple TV, Fire Stick, and more!
