Ad tiers expected to generate more than half of North American subscription revenues by end of 2026

Total revenues from ad tiers, North America (US$bn)

Ampere Analysis

Revenue from ad-supported tiers will account for 54% of subscription streaming revenues in North America by the end of this year, according to research by Ampere Analysis.

Ad-supported tier revenue will exceed US$45bn in North America by the end of 2026, making ad tiers the dominant monetisation model in the region, Ampere said. And as North America is the world’s most mature streaming market, the research firm predicts the global market will likely follow suit.

Ampere estimates that revenue from advertising alone will exceed US$18bn in North America this year, accounting for more than one-fifth of total subscription OTT revenue, for the first time.

Amazon’s Prime Video leads the North American ad-supported subscription OTT market, with revenue expected to exceed US$14bn in 2026. This follows its decision to shift subscribers to an ad-supported plan in 2023, requiring users to opt out by paying an additional fee. Netflix and Disney+, on the other hand, have encouraged users to choose their ad tier with a lower price point and fewer ads.

North America dominates the global ad-supported subscription OTT market, accounting for nearly 60% of global revenue. Consumer goods and retail companies, including Proctor & Gamble, Amazon and Walmart, are leading the shift to streaming advertising.

As subscriber growth slows elsewhere, the region is suggesting this will be the direction of travel globally.

Ampere also found that advertising has reshaped the content streamers commission. According to its research, the six largest global streamers doubled first-run and renewal orders for unscripted content in North America between 2020 and 2025, increasing investment in shows with regular releases that encourage habitual viewing.

Rory Gooderick, research manager at Ampere, said: “Advertising has become a fundamental part of streamers’ business models, changing both how success is measured and the content they commission.

“As subscriber growth slows in mature markets, the focus has shifted towards driving engagement and habitual viewing. The challenge now is to increase monetisation without compromising the premium viewing experience that these streamers have spent years cultivating.”