Ad-supported streaming surpasses ad-free in UK as market shifts
By the end of 2025, the UK streaming landscape reached a turning point with ad-supported subscriptions totaling just under 26.5 million, outnumbering ad-free subscribers, who fell to 23.1 million from 26.7 million. This marks the first time ad-supported plans have overtaken ad-free ones, signaling a significant shift in consumer preferences in the UK.
Netflix, a major streaming provider, transitioned to an ad-supported tier about three years ago to counteract slowing growth, contrasting with its previous 2019 stance of resistance to advertising. The cheapest ad-free Netflix package now costs more than twice the price of its ad-supported version. Despite these changes, the typical combined monthly spend across major streaming services has increased to about £64, a 14% rise since 2022.
The UK streaming advertising market is estimated to be worth about £1.38 billion this year, more than doubling over the past four years. This total represents nearly half of the traditional TV advertising spending of £3.15 billion. The top 10 streaming advertisers in the UK include major brands such as Apple, Sky, Tesco, Sainsbury’s, Indeed, Subway, Google, Paramount, McDonald’s, and BT.
Streaming platforms involved in this market scope include ITVX, Channel 4, Channel 5, Pluto TV, Tubi, and Samsung. So far, the impact of streaming ads on traditional broadcasters has been limited, with advertising breaks remaining relatively sparse in traditional TV programming.