As ad-supported streaming services become increasingly popular, consumer tolerance for ads is rising. According to data from market research firm Hub Entertainment Research, two-thirds of consumers say they no longer mind watching ads as much as they used to; 69% of respondents said they are willing to watch ads if it saves them money, up 11 percentage points from 2021.

"Audiences overall are more accepting of ads than ever before," said Mark Loughney, senior consultant at Hub Entertainment Research. "But I would add, don't take advantage of that."

Hub's latest edition of the "TV Advertising: Facts and Fiction" report surveyed 3,000 consumers aged 16 to 74 who watch at least one hour of television per week. Data collection was completed in April 2026 and weighted to match U.S. Census data. Consumers did not need broadband access to participate in the survey.

Just another cable TV?

The average U.S. household spends annually on entertainment subscriptions$924, and consumers now pay for TV, music, and other apps19% morethan in 2020. Rising costs, along with theproliferation of ad-supported tiers, have driven consumer interest in more cost-effective options, even if it means watching more ads.

As a result, viewers today encounter ads interspersed across multiple platforms. Does that sound familiar?

"The future looks more like television's past, with most people accepting ads in most of what they watch," Loughney said. "Our advice to those in ad sales or the streaming industry is: don't repeat the mistakes of linear cable channels—avoid very, very long commercial breaks."

However, the way ads are consumed on streaming platforms differs from traditional TV. Loughney noted that consumers are less likely to skip ads on streaming services than on broadcast channels because there is no channel surfing.

Additionally, despite the prevalence of multi-screen usage, Gen Z viewers pay more attention to ads: 69% of Gen Z say they are aware or partially aware of ads while multitasking, 22 percentage points higher than Gen X and Baby Boomers. Only 9% of Gen Z say they completely fail to notice ads while multitasking, compared to 15% for Gen X and Baby Boomers.

Algorithm trade-offs

Consumers are not only becoming accustomed to streaming ads, but they also trust TV services with their data more than social media platforms. Among Gen Z and Gen X/Baby Boomers, 57% and 56% respectively strongly or somewhat agree that TV services are more trustworthy with personal information than social media platforms—similar proportions.

The research shows that users who frequently see targeted ads tend to be more accepting of them. Comparing consumers who frequently use social media with those who never do, the former have a significantly higher positive attitude toward targeted ads: 40% versus 14%. Fewer than 15% of social media users have a negative attitude toward targeted ads, compared to 32% of non-social media users.

Data at a glance
40%
Percentage of social media users with a positive attitude toward targeted ads
14%
Percentage of non-social media users with a positive attitude toward targeted ads

However, not all information is equally important. 65% of respondents are fully or somewhat willing to share the types of shows they watch with TV services in exchange for more relevant ads. Gender (59%) and age (57%) are also pieces of information consumers are willing to share. They are less willing to share social media posts (36%), annual income (35%), and AI chat logs (33%).

The use of AI in entertainment also sparks division. A majority of respondents (55%) have a positive or somewhat positive attitude toward AI being used to optimize ad timing and reduce ad repetition. However, support declines when AI is used to generate trailers (37%), personalize dynamic ads (36%), and create commercials (34%).

"AI helps control ad load," Loughney said. "But on the creative side, not many people today want to see ads made by AI tools. That's still a line people draw."