Households may not be tapped out on subscriptions yet, but subscription fatigue is emerging as viewers seek more affordable ways to stream and rethink how much they’re willing to pay. Nine in 10 US households pay for at least one streaming service, per Parks Associates. Nearly half (45%) watched free ad-supported streaming TV (FAST) in Q1 2025, up from 42% in Q1 2024. Although viewers may be accepting of ads, overload or irrelevant messaging could turn them away. Advertisers should: diversify placements, invest in creative testing and ad frequency controls, and focus data-driven buying.

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 news: Streaming has officially surpassed pay TV in the US, with 50.4% of households no longer subscribing to cable or satellite, per our forecast. But streaming’s ad experience still has work to do. Hub Research finds two-thirds of viewers prefer live TV ad breaks over those in on-demand streaming, and Gen Z remains the least likely to adopt ad-supported tiers. Our take: Streaming isn’t a free pass to interrupt. Gen Z demands relevance, brevity, and control—meaning streaming platforms must reengineer how, when, and where they serve ads. The format must evolve if AVOD is to survive the next wave of viewer expectations.

As streaming subscription prices increase, viewers are becoming more amendable to ad-supported tiers.

Netflix advertising chief Amy Reinhard claimed the streaming service has 190 million monthly active viewers (MAV) worldwide—a new advertising metric the company shared after it stopped reporting subscription numbers earlier this year. Netflix wants to help advertisers more clearly understand an ad’s potential reach and ROI. Low churn, high-value content, and maturing ad offerings means Netflix will be an attractive option for brands for years to come—but the picture is about to get more complicated.