Mobile Streaming Apps turn to Ad-Supported Models

The pandemic of 2020 changed the world of tech, and it seems like it was for the better. Streaming apps have become a must-have and everyday, there are more and more downloads to the most popular apps. 

Netflix, Disney+, and many other apps have consistently leaned on ad-free, subscription based models. Thats until now. 

Disney is planning on releasing a model of their streaming service, but with no pay wall. This will be replaced with ads throughout the entirety of your show. The service will be free, but you will be interrupted by ads. 

Hulu and Peacock have already shown that this model not only works, but it can lead to insane amounts of revenue. Peacock, regardless of the amount you pay them month-to-month, will always show you ads. Hulu on the other hand will let you pay them to remove ads. A pretty common and fair tradeoff. 

eMarketer predicts that ad-supported video streaming viewers in the US will grow from 140.1 million to 171.5 million by 2026.

Its no surprise that this is where streaming services are headed. Most companies will be getting more money from companies paying for ad space than they will from users paying less than $15/mo. 

Adding more free services will also lead more consumers to download more apps, making room in the market for another handful of apps on each mobile device.