With Sub Fees Rising, Streamers More Willing to Accept Commercials, Survey Finds

As someone who has written about the advertising business for too many decades, it is probably a good thing that television has not turned into a commercial-free nirvana.

Part of Netflix’s remarkable initial growth was fueled by the promise of not having to watch ads, along with a low monthly subscription price.

Other streamers followed that model, but they soon found out that that formula did not produce prodigious profits.

Slowly at first, but now without abandon, streamers are jacking up their rates. They’re also pushing to get more subscribers on their ad-supported tiers and the price difference between subscription prices for those who do and don’t want ads is expanding. For Netflix, it currently costs $8.99 a month with ads and $19.00 without.

Media companies have discovered that the volume of ad revenue they can generate exceeds the difference in subscription fees they charge. In simpler terms, they make more money when you watch ads, even if you’re paying less per month.

It turns out that a lot of those people who signed to streaming early to get their ad-free watching are reluctant to subject themselves to commercials again.

Once you’re used to not watching ads, even a few 1½ minute breaks can feel soooo long. (And they will only get longer.)

New research from Bango, a subscription bundling platform, says that attitude might be eroding as an uncertain economy – and higher entertainment prices – have viewers looking for cheaper and simpler ways to stay subscribed.

Bango’s Subscription Signal report found that 36% of Americans would tolerate twice as many ads in streaming and subscription services if it lowered the monthly cost.

Younger viewers were more eager to push down monthly costs, with 46% of millennials and 49% of Gen Z willing to accept more commercials.

Bango surveyed 2,500 U.S. consumers and found that they pay for an average of 5.2 subscriptions, and it cost them $69 a month, or $830 a year. According to the survey, 23% said they are spending more than they can afford on subscriptions. That’s 41% among Gen Z respondents.

Apple TV is one of the few services that is still ad free (in its entertainment shows) but 52% of its viewers said they were willing to accept more ads. That’s more than the users of the other services. For Disney, 48% said they’d accept more ads, and it was 47% for HBO Max, 44% for Netflix and 40% for Amazon Prime Video.

“For years, the assumption was that subscribers would always pay more to avoid adverts. But for a growing number of consumers, watching more ads is now an acceptable trade-off if it means keeping monthly costs down, especially among younger viewers,” said Giles Tongue, a subscription expert at Bongo.

“The data suggests that mindsets are changing, not just plan preferences. As budgets tighten, people are not only rethinking what they pay for, but how they access subscriptions in the first place. That could mean accepting ads, looking for discounts, or turning to bundles that make subscriptions easier to manage and better value, Tongue said.

As more premium programming shifts to streaming from traditional TV, consumers are looking to stay plugged in while at the same time not paying through the nose.

“This is about keeping the services they want in ways that feel more affordable and flexible. For streaming platforms and subscription providers, it means affordability and flexibility are becoming just as important as content itself," Tongue said. “As people look for better value through bundles and partnerships, brands that make access worthwhile will be much harder to walk away from.”

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Not all TV characters can afford luxury vehicles, like the Maserati Gran Turismo Jon Hamm’s character Andrew "Coop" Cooper, drives in Your Friends & Neighbors on Apple TV.

According to data gathered by eCars Trade, the relatively humble Toyota Camry gets the most TV screen time, appearing 130 times on shows including NCIS, The Rookie, Law & Order: SVU and The Shield.

Following the Camry were the Honda Civic, Toyota Corolla and Ford Econoline pickup.

The Ford Crown Victoria Police Interceptor, an iconic cop car, was No. 5 on the list.

The sporty Ford Mustang was No. 8, and the top luxury model was the Mercedes-Benz S-Klass at No. 9.

“TV productions run on tight schedules, and a car breaking down on set costs time and money nobody wants to lose. So, the most reliable cars appear the most often, and that’s why we see the Camry, Civic, and Corolla on screens so much. The same quality that makes them top sellers in the used car market makes them a no-brainer on set,” eCars Trade said.

eCars Trade gathered the data by scrolling the Internet Movies Car Data Base of the 65 most popular TV shows.