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Subject: Which 'Ad-Free' Streaming Tiers Are Actually Ad-Free?
Date: Wed, 22 May 2024 18:34:42 -0700
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The Streamable

https://www.msn.com/en-us/money/other/which-ad-free-streaming-tiers-are-actually-ad-free/ar-BB1mRtOJ?ocid=entnewsntp&pc=U531&cvid=9ccf2c8360f34f91b07a30af4ee047a6&ei=45

Pre-play ads on so-called ‘ad-free’ streaming plans are increasingly 
common, and we’ll take a look at which streamers are forcing viewers to 
sit through them.

The one-time idealistic belief that streaming would be ad-free forever 
has long since been shattered. Streamers are not only spinning up 
ad-supported plans to tempt price-sensitive customers, they are even 
going to lengths like discontinuing low-priced ad-free plans and 
cracking down on account sharing to entice people to opt for 
ad-supported plans over ad-free versions. Streaming providers simply 
can’t ignore the revenue available through advertising, and ads have 
become such necessary income generators that they’ve even seeped onto 
ad-free plans. The Streamable has observed this trend and wants to help 
viewers who are shopping for ad-free streaming plans know which services 
actually provide streaming without commercials.

Key Details:

     Many ad-free streaming tiers force viewers to sit through an ad for 
other content available on that service.
     Pre-play ads are a bid by streaming providers to keep viewers 
engaged once their chosen show or movie is over.
     Disney+, Netflix and Peacock do a good job of not forcing ad-free 
customers to watch ads, but which streamers are the worst offenders?

The streaming world has undergone a lot of changes in the past five 
years, but the most consequential of these is the need for providers to 
show investors that their streaming businesses can be profitable, not 
just popular. That’s why streamers have so enthusiastically embraced 
ads, and many customers have followed the example; recent data shared by 
Antenna showed that 56% of all streaming subscriptions in the first 
quarter of 2024 were for ad-supported plans.

Despite this willingness for customers to accept ads in order to save 
money, there are some passionate ad-free holdouts. A February study 
found that 36% of American viewers had upgraded a streaming subscription 
for the purpose of avoiding ads, despite the higher cost of doing so. 
However, another report released by Comcast in May showed that 40% of 
Americans report finding a new show thanks to video ads, and services 
that are desperate to drive engagement know how important it is to give 
audiences another reason to stay subscribed, even if it means putting 
ads in front of playback on ad-free plans.

If you’re considering upgrading to an ad-free plan, make sure that you 
read the guide below first! The Streamable will lay out which services 
try to sneak in a commercial or two before a title’s playback starts, 
and which are truly ad-free as promised.

Netflix

The world’s largest streamer is a good place to start, particularly 
since it currently does not force viewers to watch any ads ahead of 
playback. This is not to say that Netflix hasn’t made any compromises to 
get more people on its platform to watch ads; the service discontinued 
its cheapest ad-free plan, the “Basic” tier, in July 2023 for new 
customers. Existing customers still subscribed to that plan in Canada 
and the United Kingdom began receiving notice in late April that the 
ad-free Basic tier would no longer be available to them soon, and they 
would have to upgrade to the Standard plan ($15.49 per month USD) or 
downgrade to Standard with Ads ($6.99).

Will Netflix Begin Placing Ads on Ad-Free Plan?

Netflix’s popular originals generate more word-of-mouth than essentially 
anything on any other streamer. Never say never when there’s extra money 
to be had by incorporating more ads, but for now, The Streamable will 
predict that Netflix won’t take this step on its ad-free plans. The 
streamer knows and values its reputation as a top streamer among 
customers, and foisting ads on customers who pay nearly $10 per month 
more to stream ad-free could be a severe blow to Netflix’s street cred.

Does Netflix Show Pre-Play Ads?: No

Do We Predict That Netflix Will Show Pre-Play Ads?: No

Apple TV+

Apple TV+ is in a bit of a unique situation as compared to its peers on 
this list; it’s the only streamer among them without an ad-supported 
tier of its own. The company has made personnel moves which seem to 
point to the creation of such a plan, but until then, customers are 
forced to opt for its $9.99-per-month ad-free plan.

This plan does include pre-play ads for other Apple TV+ series. Since 
Apple TV+ relies almost entirely on original content, it does not have a 
large selection of licensed shows to let customers watch once they’re 
done with their chosen program. This gives the streamer extra incentive 
to show viewers ads before playback, although it does give the option to 
skip them as well.

Does Apple TV+ Offer Pre-Play Ads?: Yes

Can You Skip Apple TV+ Pre-Play Ads?: Yes

Hulu

Perhaps surprisingly, it is more expensive to stream ad-free on Hulu 
than any other service. While Netflix’s Premium tier is more expensive 
at $22.99 per month, the world’s largest streamer also offers its 
Standard ad-free plan for $15.49 monthly. So, at a whopping $17.99 to 
stream ad-free on Hulu, the price seems to be meant to drive customers 
to the better value found within the Disney Bundle. At the very least, 
however, the premium price Hulu charges for ad-free streaming includes 
actual ad-free streaming. There are no pre-play ads on Hulu’s ad-free 
plan as of now.

Will Hulu Begin Placing Ads on Ad-Free Plan?

It feels more likely that Disney would make this move than Netflix, and 
its general entertainment service might be a good candidate to do so. 
Disney CEO Bob Iger called much of Hulu’s content “undifferentiated” in 
February 2023, and showing ad-free customers commercials for other Hulu 
originals would be a good way to help differentiate them in the eyes of 
viewers.

Does Hulu Offer Pre-Play Ads?: No

Do We Predict That Hulu Will Show Pre-Play Ads?: Yes

Paramount+

There’s no doubt that Paramount+ is the worst offender in the streaming 
world when it comes to pre-play ads. Its Paramount+ with SHOWTIME plan 
is one of the cheapest ad-free offerings available at $11.99 per month, 
but to some customers, that’s simply more confirmation that they’re 
getting what they pay for.

Paramount+ shows at least one 30-second ad for another Paramount+ title 
ahead of playback on its ad-free plan. User tests showed that the 
streamer does offer a “Skip” button while streaming on desktop, but this 
option is not consistently available when watching Paramount+ with 
SHOWTIME on smart TVs. Viewers can use the back button on their remote, 
then restart playback to skip the ad, but often this causes the 
Paramount+ app to crash.

Does Paramount+ Offer Pre-Play Ads?: Yes

Can You Skip Paramount+ Pre-Play Ads?: Not consistently across all devices

Disney+

Much like its corporate sibling Hulu, Disney+ does not force viewers on 
its ad-free plan to sit through a pre-play ad before getting into new 
content. That’s especially important for its reputation among parents, 
who are often highly particular about which products and services their 
kids are exposed to while streaming.

Will Disney+ Begin Placing Ads on Ad-Free Plan?

The X-factor for Disney+ here could be the rollout of Hulu content on 
the streamer. Disney wants viewers to find content from both streamers 
on one app to boost engagement, and putting ads for relevant Hulu 
content in front of Disney+ originals would be a great way to get 
customers to watch titles from each within the Disney+ app.

Does Disney+ Offer Pre-Play Ads?: No

Do We Predict That Disney+ Will Show Pre-Play Ads?: Yes

Prime Video

Prime Video’s ad rollout went a little differently than other 
streamers’. Instead of creating a new, cheaper plan with ads and raising 
the price on its existing ad-free tier, Amazon simply launched ads on 
its existing tier, thereby instantly converting all customers who didn’t 
upgrade or cancel to ad-supported viewers. The good news is that 
customers who opted to upgrade to ad-free Prime Video for $11.99 per 
month have not had to grapple with pre-play ads so far.

Will Prime Video Begin Placing Ads on Ad-Free Plan?

It feels like a safe bet that Prime Video will eventually begin showing 
pre-play ads, and maybe even pause ads on its ad-free plan. Amazon 
didn’t grow into the giant business it has become without a few shrewd 
business moves, and its status as an e-commerce giant simply leaves too 
many synergistic opportunities for ads that customers can shop through 
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