The Motley Fool fool.com 03 Aug, 2022 17:00 am

Are Ad-Supported Tiers the Future for Streaming Stocks?

Are Ad-Supported Tiers the Future for Streaming Stocks?
Free, ad-supported streaming services are increasingly in demand.

Ad-supported tiers are a growing trend in the streaming industry, with free, ad-supported streaming TV (FAST) services particularly rising in popularity.As the streaming market continues to crowd with more and more competition, free ad-supported options could help platforms stay competitive by attracting viewers without sacrificing profits.As the cost of living continues to rise globally and the world recovers from an economically debilitating pandemic, free ad-supported entertainment allows companies to keep margins up by providing a service for consumers unable to commit to a monthly fee.Because free ad-supported services provide a wide net of possible subscribers, companies can more easily make a significant impact on pop culture -- driving membership growth.

Consequently, a free, ad-supported option -- coupled with engaging content -- has the power to significantly drive subscriptions with its wide reach of varying demographics.Consequently, as free ad-supported services grow in popularity, investors can rest easy when a company launches a FAST service as it can offer low risk with a high probability of increased growth.

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