The news: Households may not be tapped out on subscriptions yet, but subscription fatigue is emerging as viewers seek more affordable ways to stream and rethink how much they’re willing to pay.

• 89% of US households pay for at least one streaming service, per Parks Associates.
• Nearly half (45%) watched free ad-supported streaming TV (FAST) in Q1 2025, up from 42% in Q1 2024.
• Among the eight leading providers of subscription ad-based video on demand, 59% of accounts are on basic tiers with ads.

Trendspotting: Once an underdog of the streaming landscape, FAST has become a cornerstone of the modern TV economy and a norm as many consumers now accept ads in exchange for lower costs.

Softening consumer spending, economic uncertainties, and subscription fatigue may be taking hold: 42% of paying streamers worldwide think they spend too much on subscriptions, per Simon-Kucher.

Digging into the data: Viewers are mixing paid and free services to balance budgets and entertainment needs. That tier fluidity includes downgrading to ad tiers, rotating subscriptions, or cutting redundant services. And 35% of global subscribers plan to cancel at least one subscription this year, per Simon-Kucher.

However, with 9 out of 10 households already subscribing to streaming services, the market is approaching oversaturation, per Parks Associates. Prices and bundling options could become major differentiators.

The opportunity: The normalization of ad-supported tiers will shift the ad market and benefit brands with more premium inventory, smart targeting, and potentially higher CPMs.

We expect the number of US FAST viewers to reach 129.6 million by 2029 from 116.8 million in 2025.

Platforms can use ad tiers to sustain growth in mature markets, while brands can access audiences that were previously behind paywalls.

What advertisers should do: Although viewers may be accepting of ads, overload or irrelevant messaging could turn them away. Advertisers should:

• Diversify placements across subscription ad tiers and FAST channels to reach a wide spectrum of viewers.
• Invest in creative testing and ad frequency controls to maintain positive user ad experiences.
• Use data-driven buying to capitalize on the advanced targeting and measurement opportunities offered by connected TV (CTV) environments.