VAB Report: CTV Audiences Are Ditching Subscription Fatigue for Ad-Supported Freedom
The golden age of ad-free streaming may be losing some of its shine. According to the latest report from the Video Advertising Bureau (VAB)—Staying Current on Streaming: The Latest on Connected TV Consumer Behaviors—CTV audiences are increasingly choosing ad-supported services, FAST channels, and bundled streaming options as subscription costs continue to rise.
The data reveals a clear pivot in consumer behavior: as streaming platforms hike their prices and pile on new tiers, viewers are rethinking the value of going ad-free. In fact, 62% of CTV viewers now cite recurring subscription costs as a concern, and two-thirds of U.S. adults say they prefer ad-supported streaming to its pricier, ad-free counterpart.
“Viewers are balancing their spending in streaming by shifting towards advertising-based streaming services,” said Jason Wiese, EVP of Strategic Insights & Measurement at VAB. “FAST channels, ad-supported tiers, and bundles are helping consumers unlock greater value.”
Key Shifts in CTV Behavior
The report, which analyzes data from sources including LG Ad Solutions, eMarketer, CTAM, and MRI-Simmons, highlights several core trends:
- The Rise of Free Streaming:
26% of consumers added a free streaming service in the past year, and 24% plan to do so in the next 12 months. - Ad-Supported Preference Across Demographics:
This shift isn’t limited by income or age—consumers of all backgrounds are gravitating toward free or low-cost, ad-supported models. - FAST Channels Gain Ground:
Roughly one-third of the U.S. population now uses FAST services, translating to an addressable audience of over 100 million viewers. - Bundles to the Rescue:
Nearly half of U.S. households are subscribing—or planning to subscribe—to bundled streaming services in a bid to reduce monthly costs. - Interactive CTV Ads Drive Engagement:
Viewers spend an average of 71 additional seconds engaging with interactive CTV ads compared to traditional pre-rolls, per Innovid data—offering brands a more meaningful and measurable way to connect.
What It Means for Advertisers
For marketers, the pivot toward CTV ad engagement is more than a tactical opportunity—it’s a strategic shift. With FAST and ad-supported tiers on the rise, brands can reach premium audiences without paying for placement on ad-free platforms that often block traditional targeting methods.
More importantly, interactive and personalized ads are proving to hold attention longer, helping bridge the gap between awareness and action. As consumers become more intentional about their streaming budgets, marketers who lean into creative, data-driven CTV formats can earn both attention and trust.
This behavioral shift signals a rebalancing of the streaming economy: consumers want content choice and cost control—and they’re willing to watch a few (well-placed) ads to get it.
