Tiered subscription models have become a huge driver of growth, especially for the UK entertainment sector. According to the latest statistics, 35% of Netflix users now use the ad-supported tier.
Netflix Remains Popular
Rather than giving up streaming altogether, many households are swapping to lower-priced plans to try and reduce monthly spending. Netflix is currently used by 18 million households in the UK and is one of the most-used entertainment services.
The entertainment sector is moving away from a one-size-fits-all approach to being more flexible for users. Streaming services are leading the way here, as Amazon Prime Video has introduced advertisements into its subscriptions, allowing people to go ad-free if they pay more. Strategies like this reflect changing consumer habits.
Cinemas offer standard, premium and luxury seating to accommodate those who want to pay more for experiences. Spotify allows people to use the platform for free with ads, or for a monthly fee.
In iGaming, titles like low stake 10p Roulette allow people to spend less, but at the same time, titles like Premium Roulette allow much bigger bets. The amount spent is entirely up to the individual, meaning operators can scale while putting the power in the hands of the user.
Using the example of Netflix, the cost of paying for the cheapest ad-free package is half the price of the most expensive tier, showing how much variability there is.
Subscribers are Signing up to More Platforms
The cost for a typical subscriber has risen to £64 a month, up from £56 a month in 2022. This includes paying for the standard tiers from Apple TV, Amazon, Netflix, Discovery+ and Paramount+. To avoid losing content, more people are choosing to put up with ads.
Interestingly. Channel 4, Channel 5 and ITV, who all use traditional advertisements, are not seeing any drop in growth. Netflix has openly said that they do not expect ads to be a driver of revenue, at least for 2026, but the number of people using the ad-supporting plan means that the market for advertisements as a whole is growing.
The streaming market, which includes services like Tubi and Pluto TV, is set to reach £1.38 billion this year, doubling over the last four years. Half of the spend is still being allocated to traditional UK television channels. The highest payers for advertisements include Apple, McDonald’s, Subway and Tesco, according to a published analysis from Ampere in November 2025.
As well as using ads, more platforms are looking to crack down on password-sharing. Netflix has introduced a fee for those who want to share the account outside the household. Even though this is cheaper than taking out a separate subscription, it does show how platforms are looking to increase revenue while catering to user preferences.
HBO Max is taking steps to crack down on password sharing, as is Amazon Prime.
Prime has increased the number of allowable devices from three to five to accommodate bigger households and also offers the chance to download titles for offline viewing, which has a higher limit depending on the tier paid for.
