Canadians increasingly choosing to stream with ads as prices rise: report

Bloomberg03-23 23:20

Canadians subscribed to streaming platforms again faced rising costs last year, as a new report estimates the 10 leading providers hiked prices by an average of seven per cent.The annual Couch Potato ...

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Those packages cost less for subscribers but drive additional revenue for the companies because they are able to sell commercial spots.The report said packages with advertising represent “significant” cost savings to subscribers — an average of 42 per cent less — than similar offers without advertising.“Even though prices are going up, people are choosing the alternative which is significantly less in cost,” said Convergence Research president Brahm Eiley in an interview.READ MORE: Cable 2.0: Netflix and other streamers bring back ads after disrupting TV landscapeREAD MORE: Big streamers challenging financial disclosure rules in CRTC Cancon decisionLast year, Netflix raised the monthly cost of its standard Canadian plan with ads by $2 to $7.99 per month, while the price of its standard ad-free plan increased by $2.50 per month to $18.99. Its premium plan, which is ad-free and offers extra supported devices at a time, is available for $23.99 per month.Disney Plus also rolled out a price hike for its commercial-free packages in the fall. The monthly cost of its standard high-definition offering rose $3 to $15.99, while the price of its premium 4K package went up $1 to $16.99 per month.The price for Disney’s standard subscription with ad breaks stayed at $8.99 a month.Meanwhile, Bell Media’s Crave streaming service is priced at $11.99 per month for a standard plan with ads, or $22 monthly for a premium ad-free subscription. It offers discounted pricing for annual subscriptions or those bundled with other services.Bell’s parent company BCE Inc. said last month that Crave subscriptions ballooned in its most recent quarter amid “unprecedented global fanfare” around its original hit series “Heated Rivalry,” which was released in late November. Total Crave subscriptions reached approximately 4.6 million in the company’s fourth quarter, an increase of 26 per cent year-over-year.It said total digital revenues grew six per cent in 2025, driven in part by continued Crave and sports direct-to-consumer streaming subscriber growth. The company also reported higher digital video advertising revenue, reflecting growth in ad-supported subscription tiers on Crave and other streaming channels.The Couch Potato Report estimated subscription revenue across more than 55 streaming services available in the country grew 15 per cent to $4.8 billion in 2025. The report forecasts 11.5 per cent growth this year to $5.35 billion, and that streaming subscription revenue will exceed that of traditional TV next year.In addition to higher prices, Eiley said another factor pushing subscription revenue higher is consumers’ desire to watch TV shows and movies on various platforms. He said households that pay for streaming average nearly three subscriptions each.“You need multiple sources now to watch what it is that you want to watch,” he said.“That’s a little different than the way TV was. You had one subscription and you got everything.”But Canadians continued cutting the cord from cable and satellite in 2025, which saw a four per cent decline in subscribers, according to the firm’s analysis. Subscription revenues for traditional TV packages declined five per cent to $6.2 billion.The report estimated 48.5 per cent of Canadian households did not have a television subscription with a cable, satellite, or telecom-based provider at the end of last year.That’s up from 46 per cent in 2024 and is projected to rise to 57 per cent by 2028.“It’s just kind of the inevitable at this point,” said Eiley.“Traditional TV is moving towards being a niche product.”This report by The Canadian Press was first published March 23, 2026.Sammy Hudes, The Canadian PressCTV News, CP24, BNN Bloomberg and Crave are owned by Bell Media, which is a division of BCE.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.38.0","shortVersion":"4.38.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2621700396","isCrawlerRequest":true}