The streaming revolution has disrupted the entire landscape of television. What once started as a way to bring television to the internet has now transformed into a multi-billion-dollar industry. Streaming used to be a place where users could go to watch their favorite shows ad-free. The pendulum has completely shifted towards the other side, as major streaming services are incorporating more ads onto their platforms.
Are ad-free streaming services finished? No. Users can still pay a premium to stream without advertisements. However, the era of ad-free content dominating the streaming ecosystem is over. If you believe the scales will eventually tip back toward ad-free streaming, I hate to break it for you, but it’s only going to get worse.
The original appeal of streaming
Watch your favorite shows with limited to no interruptions
Streaming dates all the way back to the 1990s, with services like RealPlayer, Audionet, and Napster. For purposes of this article, the year I want to start with is 2007. That is the year Netflix introduced its streaming media service, which offered on-demand movies and television shows. For Netflix, this development was a seismic shift in strategy, considering their previous business relied on mailing DVDs to customers.
Why would cable consumers switch to streaming? Two reasons. One—the binge-release model. Why wait for one weekly episode when I can have access to an entire season immediately? You’re saying that I can sit down, fire up a new season of Stranger Things, and finish every episode on the same day? It’s an enticing selling point that hooked those viewers looking to bypass the weekly release model.
The second reason consumers moved to streaming is the absence of commercials. I remember when Netflix first started, they did not offer any ad-supported tiers. Netflix wanted to destroy cable, not mimic it. Why pay for cable, which includes many channels you may not want, when you can pay for a service with entertaining movies and shows without commercials?
Again, it’s another alluring selling point. Even though other services in the 2010s, like Hulu, offered ads, Netflix’s complete rejection of them helped carry the service to 219 million subscribers in 2021.
The rise of ad-supported streaming
Welcome back, commercials
By 2020, the streaming wars were at their peak. As Netflix became more powerful, the other companies tried to catch up by spending ridiculous amounts of money to boost subscribers. Hulu, HBO Max, Apple TV, Paramount+, Disney+, Prime Video, and Peacock were all fighting for second place behind Netflix.
Besides Apple and Prime Video, these major streaming services did not generate profits. In fact, most operated at a loss. Other factors to consider were COVID-19, which made it even more expensive to make movies and shows, and the Hollywood strikes, which delayed productions. Studios desperately needed additional revenue streams.
You know what used to generate billions in revenue for studios? The cable television model, which runs on distribution fees and ads. If it ain’t broke, don’t fix it. It took services some time to realize that they could apply the same cable TV principles to streaming by incorporating ad-supported plans. With ad-supported plans, streamers can charge less and attract customers looking for alternatives to cable.
The straw that stirs the drink in streaming is Netflix, which went against its founding principles in 2022 with an ad-supported tier—Basic with Ads. The ad-supported subscription started off at $6.99 per month, about $5 cheaper than Netflix’s Basic Plan and $13 cheaper than Premium. Ads have only made Netflix stronger, not weaker. In 2025, Netflix’s ad revenue surpassed $1.5 billion, and the company is targeting $3 billion by the end of 2026.
Netflix also is heavily investing in live events—WWE Raw, Christmas Day football, and boxing. All of these events run ads, regardless of what tier you subscribe to.
Netflix has been a profitable streaming service for years, but for the first time, other streamers are now profitable. In 2024, Warner Bros. Discovery (HBO Max), Paramount+, and Disney+ & Hulu all reported profits. An ad-supported tier, password-sharing crusades, and price hikes have helped the streamers become profitable.
If you don’t believe these streamers will double down on ads, you’re crazy. A report from PwC Global Entertainment and Media Outlook suggests that streaming advertising revenue in the U.S. could increase from $26.5 billion to $37.3 billion by 2029. It’s reliable revenue for these companies. They’re not passing on this money, no matter how loudly you complain about commercials.
Goodbye to commercial-free streaming as we know it
Ad-supported streaming is here to stay
Streaming services are never going to come outright and say that they want all of their customers, especially the new ones, to join the ad-supported tier. However, that’s what they want. More subscribers on ad-supported tiers mean more revenue streams for the streamers. To persuade consumers to switch to an ad-supported tier, streaming services get you where it hurts most: in your wallet.
Let’s look at Netflix. The cost of each tier in 2026: Standard with ads at $7.99 a month, Standard (ad-free) at $17.99 a month, and Premium at $24.99 a month. In 2020, the cost of the ad-free tiers was: Basic (now discontinued) at $8.99, Standard at $13.99, and Premium at $17.99. The cost of ad-supported streaming is nearly the same as the lowest level of ad-free streaming from 2020.
The same patterns have occurred for other streamers. In 2020, ad-free Hulu costs $11.99. In 2026, ad-free will be $18.99, and Hulu with ads will be $11.99. Disney+ with ads is now $11.99, and Disney+ without ads is $18.99. When Disney+ launched in 2019, it had no tier with no ads at $6.99 per month.
Consumers, including myself, originally went to streaming for a different experience from cable, predominantly one without ads. Now, all they’re getting is ad-supported streaming. In the first quarter of 2025, Nielsen (via THR) reported that 72.4% of TV use came from ad-supported platforms, including cable programs and streaming with ads.
In The Wire season 4 finale, Bodie tells McNulty that the “game is rigged,” and he feels like a pawn on a chessboard. The system always wins. The streaming industry is not the drug trade, but there is an underlying theme that relates to capitalism. Today, many streaming services are now profitable. They’re making money, and yet all the major services have raised prices over the past three years. Amazon just announced its ad-free subscription is becoming Prime Video Ultra for $4.99 per month. How can the average American pay for multiple ad-free streaming services? These prices are never going down. The toothpaste is never going back in the tube.
Bundles are now the hot commodity in streaming. Why have one streaming service when you can purchase three for the price of one? Buying multiple streaming services with ads sounds like a familiar concept. Bundles are the streaming equivalent of a cable provider. Bodie was right. The game is rigged, and in the streaming era, the consumer never wins.
Don’t forget about free ad-supported television
FAST—free ad-supported television—channels are becoming increasingly popular. While streaming services like Netflix and HBO Max have become more expensive, ad-supported services like Tubi and Pluto TV remain free. Speaking of Tubi, it’s now profitable, and will partner with TikTok creators to develop long-form content. Still think streaming is returning to the ad-free era?
- Subscription with ads
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No subscriptions
- Live TV
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Yes
Stephan is the sports journalist for the Maple Grove Report.
