The world of streaming is constantly evolving as companies create new platforms and adapt their models to include additional options for consumers. In the US, cord-cutters currently spend roughly $48 per month on streaming services, according to a recent Whip Media survey. Those budgets are expected to either remain steady or decrease slightly in 2023, as viewers continue gravitating toward ad-supported tiers. In fact, Whip Media reports that 49% of adults use a free service on at least a monthly basis. Here’s what else you need to know about the current state of streaming.

Increased Interest in Ad-Supported Platforms
Amid rising inflation and the ongoing threat of a global recession, streaming platforms increasingly adopted ad-supported models to meet consumer demand. A survey conducted in November by Hub Entertainment Research showed that 57% of respondents prefer watching commercials if it means saving up to $5 on a streaming subscription. What’s more, 65% of respondents use at least one ad-supported service, and consumers said they were twice as likely to choose a streaming company that offered both ad-free and ad-supported options as opposed to only “limited ads.”

Netflix made headlines in November by debuting its ad-supported plan that costs $6.99 per month, less than half the rate of its standard package. Though the king of streamers returned some advertisers’ funds after failing to fulfill certain viewership guarantees, reports indicate that viewers are still interested in this ad-friendly model. 22% of non-Netflix subscribers are considering making the switch, according to Hub Entertainment Research. In December, Disney Plus launched its own ad-supported tier, securing initial interest from over 100 advertisers—including big names like Target, P&G and Starbucks. Of the respondents surveyed by Hub Entertainment Reach, 43% said they’d likely pay more attention to an ad if the ad breaks were shorter, while 42% expressed interest in the idea of earning rewards for watching commercials. The takeaway for marketers? The experience consumers have of an ad is closely linked to ad engagement, as those who enjoyed their viewing experience—including break length and ad load—reported paying more attention to commercials overall.

Steady Growth Despite Inflation
The global economy may be experiencing a period of general inflation, but that hasn’t stopped streaming services from skyrocketing in popularity. According to new data from Digital Entertainment Group (DEG), subscriptions in the US grew by over 17% to nearly $7.7 billion during the third quarter of 2022, marking an increase from that same time in 2021. Netflix is still the world’s largest streamer, pulling over $3 billion in sales in the US and Canada alone during last year’s third quarter. Total spending on digital entertainment, including subscription video on demand (SVOD) services, was likewise up 13% to over $9 billion in the US.

People still like going out to the movies, say experts at Whip Media. Yet popular film franchises attract their fair share of cord-cutting consumers. Case in point: Top Gun: Maverick broke streaming records after launching on Paramount Plus, claiming its spot as the third-most streamed US movie in late December. Ditto for Glass Onion: A Knives Out Mystery, which was Netflix’s most-streamed movie during Christmas weekend.

Shifts in Sports and Live Events
After Amazon dropped $1 billion to snag exclusive rights to the NFL’s Thursday Night Football lineup for 11 years starting this season, streaming platforms seemed to enter a new era in terms of their relationship with live sports. Apple TV signed on to air Major League Baseball games on Friday nights, and the latest development involves YouTube, which might soon claim the NFL Sunday Ticket for a price of $1.5 billion per year. That subscription package would enable football fans to watch any non-local Sunday games via a new feature called YouTube Primetime Channels starting next season. In keeping with this trend, Peacock, Paramount Plus and Warner Bros. Discovery announced their own upcoming deals for live sports negotiations. Live events are next in line, as evidenced by the Elton John Live: Farewell from Dodger Stadium concert that aired on Disney Plus in mid-November. Many experts believe the model of airing sports and live events on streaming platforms will continue to get stronger in 2023. In the meantime, we’ll keep our eyes on other developments that arise.