Price fatigue fuels shift to bundled, Ad-backed streaming

The streaming landscape continues to evolve, with viewers increasingly leaning into affordability and simplicity over sheer volume of content. Rising prices and a growing number of services are driving many consumers to explore lower-cost, ad-supported options. These shifting preferences are prompting media companies to adjust their monetization strategies to balance subscription income with advertising revenue.

Hub Entertainment Research's latest Monetizing Video study report shows that price fatigue is real. Hub reports that viewers are increasingly tolerant of ads, especially when this option provides cost savings. They also find that consumers are choosing bundling offers that deliver the right mix of services and features, and - for the right services - subscribers will stay engaged and loyal.

Consumers' streaming spend nears the limit

Hub's data shows that the average consumer spends $83 per month on TV services. When researchers ask respondents about their ideal spending level, they say they feel comfortable spending up to about $86. Those who pay for three or more services already exceed their comfort zone and show little willingness to add more.

This mirrors findings from Kantar's Q2 2025 Entertainment on Demand report, which notes that U.S. streaming households are adding services at the slowest pace in three years, with growth driven primarily by price promotions or bundled offers. Similar trends appear in Deloitte's Digital Media Trends study, where 47% of consumers say rising subscription costs have prompted them to cancel at least one service in the past six months.

Bundles boost loyalty and reduce churn

Hub's research finds that new streaming bundles, such as Disney+ with Max or Hulu paired with Disney+, dramatically improve loyalty. Forty-two percent of users report they are much more likely to keep bundled services compared to subscribing to the same services separately.

And, echoing what we found in DCN's Subscription Tracking Report Q2 2025, the bundling trend is only increasing, especially in SVOD, digital news, magazines, and audio. Fifty-seven percent of subscribers now subscribe to at least one bundle. Bundles offer the perception of savings, simplify subscription management, and make it a more difficult consideration for viewers to churn.

What viewers value most in streaming services

To identify what drives value perception, Hub asked respondents to rank 16 different service attributes. "Low price" still tops the list, which is unsurprising. However, several shifts stand out from last year's rankings:

• Binge-watching full seasons is important, a feature Netflix helped popularize, and competitors now match.

• Tolerance for ads is increasing. The importance of "no ads" as a top feature is declining as more viewers embrace free, ad-supported options like Tubi, Roku Channel, and YouTube.

• Live sports are gaining ground in perceived value, reflecting the migration of sports rights from traditional TV to streamers.

• Access to new theatrical movies is less critical than in previous years, with audiences leaning into original series instead.

• Choice of plan tiers matters less than it did in 2022, as consumers gravitate toward simplified bundles.

Ad-supported models gain ground

Hub's findings on ad tolerance dovetail with broader market data. An Ampere analysis reports that ad-supported tiers from Netflix and Disney+ outperform early expectations. These streaming services attract cost-sensitive subscribers while keeping them in their ecosystem.

The takeaway for streaming services

Industry implications:

1. Keep pricing pressure in check, monitoring when consumers are at their limit.

1. Lean into bundles that combine complementary services and simplify billing.

1. Highlight evergreen value drivers like low price, unlimited access, and binge-worthy content.

1. Expand ad-supported options that balance affordability with strong programming.

For viewers, these trends promise more manageable bills and fewer subscription headaches. For streamers, bundling and ad-supported strategies offer a path to stable revenue without alienating customers already stretched thin.

The streaming era may be maturing, but it is not slowing down. Price sensitivity is impacting consumer behavior. Therefore, value-added bundles and adaptable pricing models keep the relationship between viewer and streamer strong.