Not all hope is lost for affordable ad-free TV, but you might have to get a bit creative to get it.
The increasing ad-free tax
My impetus for writing this is a new report from Ampere Analysis about the growing gulf in price between ad-free and ad-supported streaming. The study found that globally over the past three years, the ad-free tiers of Netflix, Amazon Prime, and Disney+ have increased by $1.61 on average, versus $1.21 per month with ads.
Those results actually understate the problem. When you look at the United States in particular, which includes more streaming services, the ad-free tax becomes even bigger.
Let’s say you’re a subscriber to Netflix, Amazon Prime, HBO Max, Disney+, Paramount+, and Peacock. At the end of 2022 (when both Netflix and Disney launched ad-supported tiers), the total cost would have been roughly $44 per month with ads, or $70.50 without ads, for a difference of $26.50.
Those same six services now cost roughly $63 per month with ads, or $105.50 per month without ads. While the overall price has increased on both sides, the difference between ad-free and ad-supported plans has jumped by 60 percent, from $26.50 to $42.50 per month.
Here’s a closer look at how the price gap has grown over the years: