Ad-Supported Tiers are on the Rise
Netflix and Amazon are seeing more customers opt for ads. As the average household has between 2.7 and 3.3 active subscriptions, people are looking for ways to enjoy entertainment while stretching their budget.
Spotify’s free service is still very popular, in spite of ads, and digital services that offer limited access for a lower cost are experiencing exponential growth.
The same preference can be seen in iGaming. Those who explore Fishin Frenzy Big Catch Gold Spins will notice that titles in this franchise have a lower minimum bet, at £0.10 per spin. This gives players more control over how long they play, as choosing a lower wager can help them manage their budget and potentially extend their session.
As users are looking for ways to spend less while enjoying a wide selection of entertainment, companies have responded by putting together bundles. This could include offering Apple TV to those who take out a new phone contract, or broadband packages that include streaming access to Netflix, without ads.
The appeal here is very straightforward, as one payment is easier to manage than several separate direct debits, and if a saving is offered, the incentive is even greater.
Serial Churn is the Bigger Issue for Platforms
Consumers are more commonly signing up for a specific film, series, or sporting event. Exclusives have helped a lot. In 2026, platforms are finding it more effective to offer blockbuster shows like Yellowstone, which is on Paramount+, or the Korean television series Squid Game on Netflix. However, keeping the subscriber after the show has ended presents a whole new issue.
People are increasingly cancelling their subscriptions and then reactivating them when a new show is announced. Ad-supported tiers help, as a user is more likely to keep a subscription active if it’s only £4.99, but not as much if it’s £12.99.
Although households are tightening their entertainment spending, they’re still willing to spend on things that feel worth it. Streaming reached a historic surge in late 2025, taking 47.5% of the market. Even Spotify hit a major milestone recently, topping 300 million paying subscribers in the first week of August.
Podcast popularity is spiking too. 27% of adults tune in weekly. YouTube is now the top podcast, narrowly overtaking Spotify. Traditional and dedicated audio services, like BBC Sounds and Apple Podcasts, are currently seeing a steady rise in active users. Both are free to use, but Apple Podcasts has advertisements, which are added by the creator, allowing them to monetise their content, removing the need for tiered subscriptions.
Stats show that people aren’t eliminating entertainment, but they are finding new and more affordable ways to enjoy it. Companies that complement this trend will see a much lower subscriber churn rate.