Paid-for ad-supported streaming services are on track to surpass ad-free services in UK households by Q2 2026.
The latest Entertainment on Demand (EoD) findings show that Disney+ achieved its highest share of new paying subscribers in over two years between April and June 2025, while Netflix continued to innovate with live sports, a new partnership with NASA, and long-term content aggregation strategies across Europe.
The rise of ad-supported tiers in Britain is accelerating, with 37% of new subscriptions in Q2 2025 being paid-for VoD services—up from just 26% a year ago. Overall, ad-tier penetration rose to two in five (41%) in the last quarter, up 4 percentage points from Q1 2025.
Current trends suggest that households with access to ad-supported streaming services will outnumber those with ad-free services by Q2 2026, marking a fundamental shift in the British advertising market.
Prime Video leads this trend, with 83% of total subscribers—equivalent to almost 8 million households—now on the ad-supported tier. Paramount+ also saw rapid adoption with the introduction of new lower-priced tiers starting at £4.99/month. In just 12 months, Paramount+ doubled the proportion of its subscribers on ad tiering from 25% to 49%. In Britain, there are now a total of 21 million ad-tier subscriptions, representing 41% growth over the year.
Key behaviours within the video on demand (VoD) market in Q2 2025:
- Paid video streaming subscriptions in Britain reached 19.9 million households in Q2 2025, an increase of 400,000 year-on-year.
- Disney+ captured 22% of new paid subscriptions and the #1 spot for the quarter.
- Paramount+ saw strong growth with 11% share of new paid subscriptions, driven by its new, lower-priced ad tier.
- 44% of British households now have access to at least one ad-tier streaming service, compared to 51% that have ad-free paid services.
- Ad-supported subscriptions accounted for over a third (37%) of new sign-ups, up from 26% in Q2 2024.
- Pluto TV has faced challenges retaining viewers, while Samsung TV+ and Tubi continue to grow strongly.
- Netflix’s Adolescence was the most-watched title in Q2 2025, followed by the new season of Clarkson’s Farm on Prime Video and British crime thriller Dept. Q.
Disney+ Achieves Two-Year High Amongst New Subscriptions
Disney+ secured 22% of new paid subscriptions during Q2 2025, its highest share in more than two years. The second season of Andor and Season 21 of Grey’s Anatomy helped to secure 20% of these new subscribers, but compelling promotional and partner activity was the main driver of growth. Collaborations with Lloyds Bank, O2, and Tesco Clubcard, along with a limited-time offer of Disney+ Standard with Ads for £1.99/month for four months, proved highly effective.
Adding to its momentum, Disney+ recently announced a partnership with ITV, marking a first-of-its-kind content-sharing deal with the traditional broadcaster. This collaboration sees select programming shared across both platforms at no extra cost to viewers, with The Bear, Love Island, and Andor now accessible on both channels.
Netflix’s Innovation Reaches Astronomical Heights
Subscriber feedback from Entertainment on Demand indicates that Netflix continues to lead in ad experience, with the highest proportion of subscribers reporting satisfaction across metrics such as number of ads, length of ads, and variation of ads. Disney+ follows closely, especially in ad relevance. Meanwhile, although Paramount+ saw strong growth in ad-tier subscribers, only 18% of them are happy with the number of ad breaks per show.
Ad tiers help provide additional revenue streams to VoD services, but the experience of subscribers remains crucial to sustained long-term growth. Too many irrelevant ads can degrade the experience and lead to churn.
Having already entered the live sports arena with World Wrestling Entertainment, Netflix has now signed a major deal with French broadcaster TF1, allowing subscribers to access live content directly through the app. Netflix is also pushing the boundaries by announcing plans to livestream NASA space expeditions.
These innovations are already yielding results in Britain, with one in ten new subscribers citing live sports content as a reason for joining. Netflix’s refusal to fully integrate into third-party platforms like Apple TV is also becoming increasingly apparent; the company is positioning itself as a leading content aggregator rather than a contributor. This strategy directly challenges Prime Video’s longstanding approach of integrating third-party channels into its ecosystem.
As ad-supported models reshape the streaming landscape, success depends on understanding who’s watching, why they subscribe, and what keeps them engaged. WorldPanel by Numerator’s Entertainment on Demand insights help you stay ahead of the curve - and your competitors.
Connect with our expert Dominic Sunnebo to find out what’s next.