Television advertising-backed viewing expanded to account for 73.6% of all viewing in Q2, according to Nielsen.
Ad-Supported Streaming Surpasses Broadcast and Cable in Q2 2025
In a significant shift in the television landscape, ad-supported streaming platforms surpassed the combined share of broadcast and cable for the first time ever in Q2 2025. According to Nielsen's May The Gauge report, streaming represented 44.8% of TV viewership in May, its largest share to date, and 45.3% of TV viewing of ad-supported content in Q2.
This growth was driven by a 7% rise in ad-supported streaming viewing share quarter-over-quarter, while linear ad-supported viewing on broadcast and cable declined. In Q2, ad-supported broadcast viewing decreased by 16%, and cable had a 28.7% share of TV viewing of ad-supported content. In contrast, overall TV viewing of ad-supported content increased to 73.6%, with streaming accounting for the majority of this growth.
The shift towards ad-supported tiers is fueled by rising subscription prices that outpace inflation, motivating consumers to save money by choosing ad-supported plans rather than cancelling service altogether. In 2024, 66% of U.S. consumers indicated a preference for saving money with ad-supported plans.
Subscriber data highlights that ad-supported subscriptions are growing quickly. Nearly half (46%) of SVOD subscriptions offering both ad-free and ad-supported options were ad-supported in Q2 2025, with ad-supported subscriptions growing 32.7% annually compared to a slight 0.1% decline in ad-free plans. Streaming services like Disney+, Prime Video, and Paramount+ have seen notable increases in ad-supported tier adoption, with Prime Video having 83% of subscribers on ad-supported plans and Paramount+ doubling its ad-tier subscribers in one year.
While streaming dominates ad-supported viewing gains, some of this growth is attributed to continued consumption of legacy content and sports on streaming platforms, helping sustain interest despite a slowdown in new title releases. The cable category had a strong news cycle and broad coverage of the NBA playoffs in Q2.
Streaming platforms also introduced newly available seasons of popular shows such as "Love Island USA", "Squid Game" and "Ginny & Georgia" in Q2. Despite an overall decrease in TV viewing by 9% compared to Q1, the growing popularity of ad-supported streaming has contributed to a shift in the television industry, with streaming platforms set to continue dominating the ad-supported content viewing market.
- In Q2 2025, streaming platforms, offering content in 4K resolution, surpassed both broadcast and cable viewing shares, marking a significant milestone in the media and technology business.
- The exponential growth of ad-supported streaming can be attributed to rising subscription prices, leading consumers to choose affordable ad-supported plans instead of completely canceling service.
- As a result, ad-supported streaming represented 44.8% of TV viewership in May 2025, with streaming accounting for the majority of the growth in ad-supported content viewing.
- Many OTT streaming services, like Disney+, Prime Video, and Paramount+, have seen a notable rise in ad-tier subscriptions, with Prime Video having 83% of subscribers opting for ad-supported plans.
- The growth in ad-supported streaming is not only due to new content releases but also to the consumption of legacy content and sports on streaming platforms, which have sustained interest despite a slight slowdown in new title releases.
- With the overwhelming popularity of ad-supported streaming, entertainment finance analysts predict that streaming platforms will continue to dominate the ad-supported content viewing market, profitable for both content producers and consumers alike.
