New Study Shows Ad-Supported Audio Gains More Listeners Than Ad-Free Options

According to a recent study conducted by Edison Research, ad-supported streaming services have a higher number of listeners compared to their paid, advertisement-free alternatives.

For many years, radio provided the easiest and most cost-free method for people to enjoy music. However, these stations typically relied on advertisements, making commercial breaks common between tracks. To avoid all commercials entirely required buying albums either on vinyl, cassette, or compact disc.

In today’s world, due to platforms such as Spotify, Apple Music, and YouTube, numerous consumers are ready to shell out extra money just to steer clear of advertisements completely.

However, recent information provided by Edison Research shows that in the U.S., most individuals dedicate the bulk of their daily listening time to platforms supported by advertisements (64%) rather than those without ads (36%). The ad-supported services considered in this research encompass traditional AM/FM broadcasts, online radio feeds, music videos on YouTube featuring commercials, SiriusXM’s non-music programs, freely accessible streaming audio options, as well as podcasts.

People who frequently use media supported by advertisements are generally older; among Americans over the age of 55, 75% dedicate their audio consumption time to ad-supported formats. For listeners between 35 and 54 years old, this percentage drops slightly to 65%. On the other hand, individuals from ages 13 to 34 allocate nearly equal amounts of time to both ad-free audio, which accounts for 46%, and ad-supported audio, making up 54%.

This information aligns with the fact that younger Americans tend to use platforms where blocking ads is simpler and more affordable, such as Spotify and YouTube. Additionally, older individuals are more accustomed to hearing commercials during traditional radio broadcasts, which might make them less bothered by advertising compared to their younger counterparts.

From the viewpoint of service providers, advertisement-supported audio continues to be a potent method for engaging with consumers and boosting brand and product recognition. In line with this, numerous video streaming platforms, like Netflix, are incorporating advertisements even within their premium subscription models.

This raises the question of whether streaming services like Spotify will emulate what has happened with video platforms. This week, reports have emerged suggesting that recent changes to Spotify’s advertisements might lead to ads being shown even on paid subscriptions. Specifically, these rumors indicate that the present $11.99 per month Premium subscription could start featuring occasional commercials, while the company rolls out an additional pricier option for those who want uninterrupted, ad-free access.

Even though Spotify has refuted these claims, several users say they've seen advertisements in their paid Premium accounts. The company attributes this to a technical glitch.

However, it's unclear if these indications represent the initial signs of another potential income stream for the streaming behemoth. For years, the corporation has faced criticism regarding its poor royalty payouts to musicians.

Maybe additional advertisements could offer Spotify a means to increase payments to artists on its platform. Nonetheless, this does not guarantee that users are ready to accept the associated costs.

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The tale initially surfaced on Digital Music News .

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