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Streaming services with ad-supported plans outpace ad-free tiers

Parks Associates released new findings on the state of the U.S. video market during its eighth annual Future of Video: Business of Streaming conference.

The research firm’s “S.O.S. State of Streaming” report, produced in partnership with Adeia, Broadpeak, Philo, Skreens, Sling TV and InterDigital, highlights significant shifts in how U.S. households access pay-TV services. According to the firm, nearly 50 percent of U.S. pay-TV households now receive their service through internet-delivered platforms.

“Consumer choice dictates the future of video,” the firm stated. “Success will depend on adapting to shifting behaviors and maintaining trust across the value chain.”

Research from Parks Associates also showed that ad-supported tiers are becoming the default choice for many American streaming subscribers. Services that launched with ad-supported options from the outset have higher adoption rates for those plans compared to ad-free tiers.

From the NCS article, "Streaming services with ad-supported plans outpace ad-free tiers"

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Brett Sappington is a senior director of research at Parks Associates. He leads the firm’s services research team, which publishes industry insights on access and entertainment services, digital media...