Ad-supported VOD subscriptions are experiencing significant growth in the U.S., with new data showing these tiers now represent 43% of all subscriptions among services offering ad-supported plans as of Q3 2024.

According to Antenna's latest report, major streaming platforms have seen substantial increases in ad-supported subscriptions:

• Netflix: 44% of new subscriptions are ad-supported
• Max: 39% of new subscriptions are ad-supported
• Disney+: 62% of new subscriptions are ad-supported

The overall share of ad-supported VOD subscriptions has grown from 28% in Q3 2022 to 43% in Q3 2024, with a notable jump from 39% to 43% between Q2 and Q3 2024 alone.

This trend raises questions about potential implications for music streaming services. While Spotify maintains a significant ad-supported user base of 402 million MAUs as of Q3 2024, most growth comes from emerging markets rather than established regions like North America and Europe.

Key considerations for music streaming platforms:

• Ad-supported listening generates significantly less revenue than paid subscriptions
• 55% of Spotify's total MAUs now come from regions outside Europe and North America
• Apple Music, without an ad-supported tier, reportedly leads in U.S. Individual subscriptions
• Major labels are pushing for paid ad-supported listening in established markets

These developments suggest possible changes in streaming service pricing and structure as the industry heads into 2025, with potential implications for both video and music streaming business models.

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