The Ad-Supported Streaming Market

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As ad-supported streaming surges in viewership and revenue, platforms are prioritizing dynamic targeting, AI, and FAST to meet and exceed shifting consumer and industry demands. Explore CTAM’s curated stats, trends, and forecasts shaping the ad-supported market landscape.

• Advertising Video on Demand (AVOD) spending expected to rise by 17% due to increased revenue, specifically from Prime Video, Netflix, and FAST networks fueling the total advertising-supported streaming marketplace. (MediaPost, October 2025; Moffett Nathanson Research)
  • Over $15 billion projected to be spent on 11 platforms in 2025.
  • Revenue spikes include The Roku Channel (22%) and Tubi (24%), with Hulu leading the pack, and Prime and Netflix gaining.
• Streamers reduce 2025 linear media spending by 48% while NFL and College Football linear ad spending increased by 4% in Q3 2025. (MediaPost, October 2025; EDO Ad Engage / iSpot)

• 50% of poll participants who are professionals in film and TV highlighted effective media placement strategies as the most impactful factor in reducing churn. (Looper Insights: Streaming Forward: Trends Shaping Digital Entertainment in 2025)

• Looper Insights asked industry leaders which AI application will most effectively optimize streaming platform performance in 2025.

  See what industry leaders reported:

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The majority of streamers and platforms pointed to dynamic ad targeting as the top choice, emphasizing its ability to deliver relevant ads seamlessly without disrupting the user experience.

View Full Report from Looper Insights

• To determine which operating system leads in combining interface quality, app availability, and performance for streaming in 2024, Looper Insights turned to industry insiders for their insights:

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Apple TV emerged as the top choice, with Roku, Vizio TV, Samsung, and Amazon Fire TV also leading the pack out of all of the major platforms.

View Full Report from Looper Insights

• The number of “monthly active households” using free ad-supported streaming TV services was up 12% YoY as of August, while the average daily FAST viewing hours per household climbed 16% YoY. (Wurl CTV Trends Report, 2025)
• The increase in average daily households as well as hours of viewership per household resulted in a nearly 29% boost in total HOV across ad-supported streaming channels over the past 12 months. (Wurl CTV Trends Report, 2025)

• Among programming genres, reality programming garners the biggest share of FAST viewing time, consuming nearly 11% of aggregate usage. (Wurl CTV Trends Report, 2025)

• Almost 14% more free ad-supported TV channels exist this year than did in 2024, up 76% from 2023.

  • Documentaries and drama provide the greatest amount of FAST content, while news is increasing most rapidly. (Gracenote, August 2025)

• The number of unique FAST offerings are projected to increase this year, reaching 1,943 channels. (Deadline, 2024)
• Free ad-supported TV (FAST) channels like Pluto TV, Roku Channel and Tubi accounted for 4.3% of streaming, beating out Peacock, Max, and Paramount+, which totaled 3.7%. (Nielsen, 2024)

• Ads will provide nearly 28% of streaming services’ revenue by 2028. (PWC Global Entertainment and Media Outlook 2024-2028)
• Premium streaming platforms increased ad revenues by almost 50% year-to-year during the third quarter in 2024, reaching $3.8 billion. (MoffettNathanson, Q3 2024 Analysis)

• For the 11 top premium streamers, 2024 revenue estimates for AVOD platforms are projected to grow 39% to $14.3 billion. (MoffettNathanson, Q3 2024 Analysis)
• Notably, political advertising significantly boosted revenue for platforms like Max, Discovery+, Tubi, Pluto, and Roku. (MoffettNathanson, Q3 2024 Analysis)

Streamers tap diverse revenue models as AVOD grows

(TVNewsCheck, 2025)

• The global AVOD market is projected to grow to $69 billion by 2027, up from $38 billion in 2023 (Statista, 2024)
• 70% of consumers consider payment options when making purchasing decisions (PYMNTS, 2024)
• Full Story: TVNewsCheck (free registration) (TVNewsCheck, 2025)

• Consumers understand the trade-off between free and commercials as 81% of free streaming service subscribers and 69% of SVOD subs are willing to accept commercials/ads. (Source: Magid’s Video Entertainment Pulse Study)

• 50% of streaming users pay for a streaming service without ads, with 24% reporting that they specifically pay to avoid ads and prefer an uninterrupted viewing experience. (Forbes, 2024)
  • 26% are unsure whether their subscriptions include ads or not, suggesting a degree of ambiguity or indifference towards the presence of ads in streaming content. (Forbes, 2024)
• Almost seven out of ten (69%) consumers are interested in having an improved ad experience—one that enhances their viewing and uses the capabilities of today’s technology. (CTAM/ Magid Content + Connectivity, 2024)

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