Ad-supported tiers of OTT platforms in the US will earn more than $10 billion in ad revenue in 2027, a new research from Ampere Analysis said, adding that ad-supported tiers are growing there.
Currently, Hulu, Peacock and Paramount+ represent the bulk of subscriptions. However, uptake is growing for players like Netflix, driven in no small part by its account-sharing crackdown, and for Disney+, which increased its price alongside launching the ad tier, a media statement from Ampere Analysis stated.
Currently, more than one million US Netflix accounts are on the ad-supported tier, representing nearly two percent of the entire subscriber base, whilst around 800k Disney+ accounts are on the ad-supported tier, representing around two percent of its subscriber base.
Prior to the launch of Max, Discovery+ had in the region of 10 million ad-supported accounts. HBO Max had around two million, Ampere Analysis said.
Ampere expects that more than 90 percent of Hulu subscribers are on the ad-supported tier, representing around 45 million subscriptions. Hulu launched as an ad-supported subscription service in 2010, before launching its ad-free tier in 2015.
Peacock has the most ad-supported subscribers of any new US OTT service, with more than 30 million ad-supported subscribers.
Paramount+ is not far behind Peacock, with more than 25 million ad-supported subscribers to its service in the US.
Ampere expects that ad-supported subscription tiers in the US will generate more than $10 billion in advertising revenue in 2027.