Key facts
- Peacock's ad-free plan now costs $19.99 per month, a $3 increase.
- The total monthly cost for ad-free versions of eight major streaming services exceeds $137.
- 48% of premium streaming subscriptions are ad-supported, up from 39% in Q1 2024.
- 59% of new streaming subscriptions in Q1 2024 were for ad-supported plans.
- Ad-free streaming services saw more cancellations than sign-ups in the first quarter.
- Free streaming services' viewership share on US TVs reached 19.1% in May.
The cost of ad-free streaming services continues to climb, with Peacock being the latest to implement a price hike. NBCUniversal's streamer now charges $12.99 per month for its ad-supported tier and $19.99 for its ad-free option, marking its fourth price increase in four years. This brings the total monthly cost for ad-free access to major services like Netflix, Disney+, Hulu, HBO Max, Peacock, Paramount+, Apple TV, and Amazon Prime Video to over $137.
In response to rising prices, consumers are increasingly shifting towards ad-supported plans and free streaming alternatives. According to data firm Antenna, nearly half of all premium streaming subscriptions are now ad-supported, a figure that rose from 39% in the first quarter of 2024. Furthermore, 59% of new subscriptions in the first quarter were for ad-supported tiers, and ad-free services experienced more cancellations than new sign-ups during that period.
The appeal of free streaming platforms such as YouTube, Tubi, and The Roku Channel is also growing, collectively accounting for 19.1% of US TV viewership in May. This trend is prompting major media companies, including Disney, Paramount Skydance, and Netflix, to explore offering free content to attract budget-conscious audiences. However, analysts caution that balancing free offerings with the need to support subscription models presents a significant challenge for these companies.