Ad-supported video-on-demand (VOD) subscriptions are experiencing significant growth in the U.S., reaching 43% of all subscriptions among services offering ad-supported tiers in Q3 2024, according to new data from Antenna.

Individual streaming platforms showed notable increases in ad-supported adoption:

• Netflix: 44% of new subscriptions
• Max: 39% of new subscriptions
• Disney+: 62% of new subscriptions

The overall share of ad-supported VOD subscriptions has grown significantly:

• Q3 2022: 28%
• Q3 2023: 32%
• Q3 2024: 43%

This trend raises important questions for music streaming platforms. While Spotify maintains 402 million ad-supported monthly active users (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:

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

Factors driving ad-supported VOD growth include:

• Rising subscription prices
• Economic pressure on consumers
• Restrictions on account sharing
• Growing acceptance of ad-supported models

These trends suggest potential changes in streaming business models and compensation structures as we move into 2025.

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