Streamers Prefer CTV Platforms that Provide Both Ad-Free and With-Ads Options

2 Min Read

When it comes to pricing structures for Connected TV platforms, new research indicates that offering viewers tiered options may have the broadest appeal. In their latest Monetization of Video study, Hub Entertainment Research found pricing structures that provide both ad-free and ad-supported tiers were the most popular among those surveyed. And it looks like streaming content providers are already taking notice. One example is HBO Max, which just added a lower-price, ad-supported tier to their pricing model this year. According to Hub Entertainment, 39% of existing paid HBO Max subscribers indicated that they would likely begin making the switch to the ad-supported option. 

The new pricing tier also seems to be effective at bringing in new streamers – 27% of the respondents who weren’t HBO Max subscribers at the time said that they would likely be signing up for the ad-supported version. “There are many who will choose ad-supported TV if it saves money or lets them watch a show they can’t watch somewhere else,” stated Jon Giegengack, principal at Hub. Ultimately, this increase in pricing-tier options is good for both advertisers and consumers alike. By allowing streamers to have more control over how they pay for the content they consume, Connected TV viewers can save money while advertisers gain more ways to reach their target audiences

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