Streaming Platforms Are Capturing the Television Advertising Market

As consumers increasingly switch to lower-priced ad-supported subscription plans, advertising spending on streaming platforms is projected to reach $20 billion by 2029. Excluding political advertising; traditional television encompasses broadcast, cable, and national syndicated programming; streaming includes media groups with their own streaming services, pure-play streaming platforms, and hardware manufacturers, excluding YouTube. The most sought-after destination for television advertising is no longer traditional national TV. With user bases continuously expanding, streaming platforms are steadily capturing a larger share of advertising budgets. Advertising consultancy Madison and Wall estimates: streaming ad spending has grown rapidly in recent years and could approach $20 billion by 2029, nearly matching the scale of traditional linear television advertising. This industry trend will be a central theme at this week's star-studded Upfront presentations. Major media and technology giants will aggressively court brands, aiming to secure billions in budget commitments for their TV networks and streaming platforms. Premium Streaming Quarterly Net New Subscriber Additions Coverage includes: Apple TV+, Discovery+, Disney+, Fox One, HBO Max, Hulu, Netflix, Paramount+, Peacock, Starz. Note: Apple TV+ and Starz currently do not offer ad-supported tiers; excludes free versions, select bundles, multi-channel video, and telecom distribution. Source: Antenna When early ad-free streaming services like Netflix launched, they offered relief to consumers weary of lengthy TV commercials. However, ad-supported streaming models have become more popular in recent years. Data from research firm Antenna shows: Among new premium on-demand streaming subscriptions in the U.S., ad-supported plans now account for nearly 50%, up from just 39% two years ago. More notably: Of the nearly 65 million net new subscriber additions across major streaming platforms over the past nine quarters, 78% opted for ad-supported tiers. This data excludes free versions, specific bundles, and other distribution channels. While a majority of adults prefer lower-cost plans with ads, a recent online poll by Morning Consult reveals significant generational differences. Older viewers are more willing to watch ads to save on subscription fees, while younger demographics show greater aversion to advertising. Percentage of Generational Preference for Streaming Plans

Demographic Prefer Lower-Cost Ad-Supported Plan Prefer Higher-Cost Ad-Free Plan Unsure / No Opinion

All Adults 56% 26% 18%

Gen Z 46% 33% 20%

Millennials 47% 35% 18%

Gen X 63% 23% 14%

Baby Boomers 67% 13% 20%

Note: Totals may not sum to 100% due to rounding; Sample: 1,048 adults, online survey conducted May 7-8; margin of error ±3 percentage points. Source: Morning Consult Amid persistent streaming inflation, major platforms like Netflix, Peacock, Paramount+, and Disney+ have raised prices over the past year. Some platforms have invested heavily in securing rights to sports events like the NFL and MLB, necessitating subscription price adjustments to offset high costs. Sports content will be a major focus at this week's Upfront presentations—live sports attract massive audiences, making them a must-buy category for brand advertising. Monthly Pricing Changes for Major Streaming Ad-Supported / Ad-Free Plans Coverage: Hulu, Netflix, Amazon Prime Video, Apple TV+, Disney+, HBO Max, Peacock, Paramount+ Note: Price changes based on official announcement dates; Peacock Premium refers to the ad-supported, limited content library plan; excludes Hulu plans with live TV; all prices are for standalone subscriptions. Source: Company announcements Streaming platforms also help brands reach younger audiences and offer more precise ad-targeting capabilities than traditional TV. Traditional television has long relied primarily on demographic targeting, while streaming can match ads based on user purchase history, online search behavior, and other data. Despite the strong momentum of streaming advertising, media companies cannot afford complacency. Brian Wieser, founder of Madison and Wall, points out: The total television advertising market (traditional TV + streaming combined) is on a long-term downward trajectory. "Marketers prefer to allocate budgets to channels that directly drive sales," leading to a continuous shift of advertising budgets toward digital platforms like Meta, Alphabet, and Amazon. These three alone control more than half of the $428 billion U.S. advertising market. YouTube is also a favored platform for advertisers and has become a significant player during the Upfront season. The Google-owned video site will host its Brandcast event in New York this week alongside major TV networks, featuring comedian Trevor Noah as host and singer Chappell Roan performing, all aimed at major advertising brands.