Streamers are seeing a significant migration of users to ad-supported tiers, according to the latest data from Circana.

Survey findings released yesterday in the Chicago-based research firm’s new TV Switching Study noted that 75% of US households now subscribe to at least one ad-based tier of an SVOD service. This represents a double-digit jump from 55% just six months ago.

Unsurprisingly, cost-saving seems to be driving this shift—over this same six-month period, the report estimates a 52% increase in the price gap between ad-based and ad-free viewing. And the ongoing proliferation of ad-based TV means “significant opportunities for advertisers as these audiences are poised to scale rapidly,” says John Buffone, Circana’s VP and media entertainment industry advisor. “This suggests the industry will reap the rewards of recent and upcoming strategies to bundle SVOD services, even when bundling with competitive platforms.”

Indeed, the survey highlights a boost in positive reception for SVOD bundles. Among respondents that use streaming bundles, Circana found that roughly half (49%) feel it’s an efficient way to save money. But 45% also want to see more customizable bundling options in the market.

It’s apt timing for Disney and Warner Bros. Discovery, which announced a new US streaming bundle last week that should be successful in attracting families. Featuring Disney+, Hulu and Max, it will roll out this summer and include both ad-based and ad-free options.

Separately, the study also noted an increase in the use of FAST services such as Tubi TV, Pluto TV, Freevee and The Roku Channel. Collectively, these platforms now boast a daily audience reach of 19.7 million US households—and a key factor driving this growth is the availability of TV shows, according to the survey.

To gather data for its report, Circana canvassed 5,039 consumers across the US between February 29 and March 18, 2024.

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