OTT video—including YouTube, subscription OTT, AVOD, and free ad-supported streaming TV—is extremely popular in nearly all forms. But traditional pay TV continues to reach new lows.

The trend: Gen Z is opting out of both traditional pay TV and ad-supported streaming tiers, signaling deeper changes in viewing behavior. Just 42% of Gen Z subscribers use ad-supported SVOD, while less than half of all US households now maintain a pay TV subscription. Our take: Streaming’s future depends on reaching the next generation, but current models—especially ad-supported tiers—aren’t meeting Gen Z where they are. With only 1.3 hours of streaming and 0.8 hours of traditional TV per day, Gen Z prefers social video, gaming, and music. To stay relevant, platforms must prioritize native formats, interactivity, and creator integration over legacy ad models.

Spotify is launching a free ad-supported TV (FAST) channel in partnership with Samsung TV Plus, per a Thursday announcement. Marketers now have the opportunity to combine the effectiveness and precision of CTV advertising with the authenticity of podcast advertising to convert passive listeners into active customers.

Advertisers gain a holistic view of how audiences consume ad-supported content across digital and traditional platforms. This is critical because viewers maintain high penetration rates for both streaming (95.1%) and live TV (88.5%), while 98.8% watch TV in some form.

Ad-supported and free ad-supported streaming TV (FAST) are surging in popularity—what started as low-cost, complementary streaming options are becoming primary destinations for discovery. Total US hours spent watching FAST services reached 1.8 billion in August, per Comscore’s 2025 State of Streaming report, up 43% YoY. Advertisers should view FAST and ad-supported streaming options as a crucial part of the CTV media mix, tapping into rising demand for budget viewing options and the services’ wealth of user engagement data for campaign optimization.

Netflix reported a strong Q3 on Tuesday, increasing revenues 17.2% YoY, in line with the forecast issued in Q2. The company stated that it is on track to double its ad revenues in 2025, claiming Q3 was its strongest quarter yet for ad sales—proving that momentum is largely being driven by Netflix’s maturing ad offerings. Marketers can capitalize on audience appetite for ad-supported tiers, but should focus their investment in platforms with proven results as less dominant connected TV (CTV) providers are likely to struggle in Q3 and beyond.

Netflix is reportedly exploring an acquisition of Warner Bros. Discovery (WBD)’s studio and streaming operations—its boldest move yet to consolidate the streaming market. The deal would include HBO, Warner Bros. Pictures, and HBO Max but exclude cable properties. For Netflix, the acquisition would supercharge its ad-supported tier with premium, long-tail content, expanding both viewership and inventory. The potential combination of HBO’s prestige programming and Netflix’s data-driven ad platform could redefine connected TV advertising, pressuring rivals like Disney+ and Peacock. If successful, the merger would mark streaming’s biggest consolidation since Amazon’s MGM purchase—and a new era for premium video.