New TV Advertising Research from Hub: The ad experience is getting better, and viewers are more receptive to ads

As viewers increasingly adopt ad-supported streaming, they find the ad experience is better than it used to be. Hub’s semi-annual “TV Advertising: Fact vs. Fiction” study shows that more viewers than ever are opting to save money by accepting ads, and fewer viewers are saying they cannot tolerate TV ads.  These trends are even more pronounced among viewers under age 35.

Findings from Hub’s “TV Advertising: Fact vs. Fiction – Wave 10” include:

Viewers don’t mind watching TV with ads the way they used to, and that leads to greater ad acceptance.

The shorter and less frequent ad breaks in many streaming services are better for viewers than the old heavily commercialized linear TV experience.

• Younger viewers are more likely to say, “I don’t mind watching TV with ads as much as I used to.”

A better ad experience leads to a greater likelihood to accept ads to save on subscription costs. Over the past four years, as more services like Netflix, Amazon Prime Video, and Disney+ have introduced ad-supported tiers, the choice to accept ads to reduce cost has risen dramatically.

• In December 2025, two-thirds of viewers would “rather save money” than avoid ads, up significantly from 2021.

Over the same four-year period, the number of viewers who “can’t tolerate ads” has gradually declined as well.

Economic anxiety persists among viewers, and it’s affecting how they manage their TV subscriptions.

• Since Fall 2022, half or more of viewers have expressed they are “very concerned” about the state of the economy, and in this wave, it was 54%.
• At the same time, nearly half (46%) of viewers think streaming services are raising their prices more often than in the past.

Put those sentiments together, and many people are expecting to reduce spending on TV.

• Particularly, those who are very concerned about the economy are more likely to reassess their spending on TV subscriptions, with two-thirds saying they are planning to cancel or reduce spending.
• Not surprisingly, lower income viewers are also more likely to say they will be reducing their spending on TV.

Ad-supported subscription tiers offer an opportunity to retain budget-conscious viewers.

With so many viewers willing to reduce their spending on TV services, lower cost ad-supported subscriptions can keep many of them from canceling.

Viewers’ awareness of the major streamers’ ad-supported has continued a gradual increase over the past two years, and a majority now know that Hulu, Amazon Prime Video, Netflix and Peacock provide lower cost services with ads.

There has also been a corresponding increase over the past year and a half of viewers opting for a strictly ad-supported mix of subscriptions.

• As of December 2025, one-third avail themselves of ad-supported services only, significantly higher than in June 2025.

Part of that increase in ad-supported-only viewing is driven by tier switching. There has been a significant increase in the past eighteen months in viewers migrating between ad-free and ad-supported service tiers, with a third now saying they have done so.

• Younger viewers age 18-34 are more likely to say they don’t mind TV ads as much as in the past, and that leads to a far greater likelihood to switch between ad-supported and ad-free tiers.
• Nearly half (45%) of have done so, a considerable 19 points higher than those age 35+.

Not surprisingly, given the degree of economic uncertainty among viewers, and their desire to reduce spending, tier switching is mainly about saving money. Those sentiments are significantly more prevalent among viewers than they were in June 2024.

But there is underlying good news for video streamers: TV still delivers great value.

Although TV subscription costs are rising, and viewers are looking to cut costs, the ability to manage their array of services allows them to derive significant value from TV.

• Two-thirds of all viewers agree TV subscriptions deliver more “bang for the buck” than other entertainment options, and among those who habitually churn in and out of their subscriptions, the number is even higher (75%).

Viewers 18-34 and those with kids, who are the most likely to switch to lower cost subscriptions, are the most likely to see value in their TV services. Once again, this shows if viewers are comfortable with the price point of a subscription, they value it.

Economic anxiety has viewers reconsidering their TV subscriptions, but services that continue to deliver value can minimize cancellations.

U.S. TV viewers have been hit hard by inflation and worries about a potential recession over the past several years, during and post-pandemic. The continued uncertainty brought on in 2025 by new tariff policies and other disruptions still has consumers concerned.  TV subscriptions are not excluded from viewers’ consideration when they are trying to keep rising household costs in line.

But the strategic decision by many streamers to offer lower priced ad-supported subscriptions has turned out to be a smart hedge against cancellations. Many viewers, especially those who are younger or have kids are finding the ad experience is better than it used to be, and opting for ads to save money is a good deal.

“As we head into 2026, TV viewers continue to worry about the direction the economy is headed,” said Mark Loughney, Senior Consultant at Hub. “But for TV and video streaming providers, the news is better. By giving viewers the choice of accepting ads for cost savings, they are delivering great value compared to other entertainment. Viewers are figuring out for themselves the optimal mix of ad-supported and ad-free services that fit within their budgets. If the streamers continue to provide an ad experience that’s better than traditional TV, they will deliver good value and minimize churn.”

These findings are from Hub’s 2025 “TV Advertising: Fact vs. Fiction” report, based on a survey conducted among 3,000 US consumers age 14-74, who watch at least 1 hour of TV per week. Interviews were conducted in November 2025 and explored consumers’ attitudes toward advertising, how it differs across video platforms, and how ad strategy affects viewer engagement.  A free excerpt of the findings is available on Hub’s website. This report is part of the “Hub Reports” syndicated report series.

Download the press release charts HERE.

Since 2013, Hub Entertainment Research has measured and tracked how technology changes the ways consumers discover, choose and consume entertainment content. We work with the largest networks, pay TV operators, streaming providers, and studios. For more information, visit our website and subscribe to our newsletter at hubintel.substack.com.