Advertising-supported streaming tiers to drive majority of revenue by 2026

Advertising-supported subscription models are becoming the primary revenue driver for streaming services in North America. According to an analysis by Ampere Analysis, ad-supported tiers are projected to account for 54 percent of total paid streaming revenue in the region by the end of 2026.

Total revenue from these models is expected to exceed 45 billion US dollars this year, with advertising revenue alone likely surpassing 18 billion US dollars. Amazon Prime Video is positioned as a leader in this shift, with projected revenues of over 14 billion US dollars from its ad-supported offering by 2026. In contrast, Netflix and Disney+ utilize a model where users choose between premium ad-free tiers and cheaper ad-supported options.

This shift is also influencing content production. The six largest streaming providers have doubled their orders for non-fiction formats, such as reality and documentary programming, in North America between 2020 and 2025 to better support advertising needs. Additionally, reports indicate that Disney+ is considering a free, limited-access tier to attract users, similar to showcase models used by other providers, though no official timeline or confirmation has been released.