UK Broadcasters Celebrate Competitive Edge Against Netflix in Ad Revenue

In a notable shift within the streaming landscape, UK broadcasters are finding renewed hope as they contend with the dominance of U.S. giants like Netflix in the advertising market. On June 14, 2025, industry reports highlighted that households opting for ad-supported streaming packages consume significantly less content—up to 40% less—compared to their ad-free counterparts. This emerging trend has sparked discussions about the future of ad revenue in the UK, valued at over £1 billion, as traditional broadcasters strive to maintain their footing against internationally recognized platforms.

The advent of streaming ads marks a significant change for Netflix, which traditionally resisted advertising in favor of subscription revenue. As of late 2024, the company reversed its stance, introducing ad-supported packages to counteract stagnating subscription growth amidst a cost-of-living crisis that has made consumers more receptive to advertisements in exchange for lower fees. According to a report by Ampere Analysis, Netflix now boasts around 17.6 million subscribers in the UK, with over 4 million utilizing its ad-supported service.

Research conducted by Digital i indicates that viewers of ad-supported content are notably less engaged. For instance, Netflix users with ad-supported subscriptions watch an average of 22 minutes less content daily than those on ad-free plans. This trend is echoed in Amazon Prime Video, where ad-supported users watch 23 minutes less compared to their ad-free peers. Disney+, while having the narrowest gap in viewing time, still reflects a shift towards lighter consumption among ad-supported users.

Experts in the industry, including Matt Ross, Chief Analytics Officer at Digital i, suggest that the disparity in content consumption can be attributed to the limited access that ad-supported subscriptions typically offer. "More engaged viewers typically opt for ad-free tiers, valuing the uninterrupted experience they provide," Ross stated. This insight suggests that the increase in ad-supported subscriptions may not equate to the same level of viewer engagement traditionally sought by advertisers.

Reflecting on the competitive landscape, UK broadcasters express cautious optimism. A senior executive from the UK television industry remarked, "The appeal of the global streamers’ ad tiers to advertisers doesn’t stack up against the streaming services offered by British broadcasters." This sentiment underscores the belief that UK broadcasters may leverage the lighter viewership of ad-supported platforms to retain their advertising revenue.

Despite the challenges, Netflix is determined to enhance its advertising strategy, with co-CEO Greg Peters indicating that 2025 would be a pivotal year for the company's transition in the ad space. The company recently launched an in-house ad-tech platform aimed at improving ad targeting—a critical factor for attracting advertisers looking for effective engagement.

However, some industry leaders caution that the initial foray of U.S. streamers into the UK ad market has been met with mixed reactions. A media agency chief executive described Netflix's early advertising efforts as unsuccessful, citing underwhelming uptake and expensive pricing strategies. The competitive nature of the ad market requires constant adaptation, particularly as U.S. companies like Amazon and Disney+ refine their approaches.

As the advertising landscape continues to evolve, the implications for UK broadcasters remain significant. The traditional television ad market, valued at approximately £3.58 billion, is under pressure as streaming services gain traction. Richard Broughton, a director at Ampere, emphasizes that advertising success is inherently tied to scale, suggesting that while UK broadcasters currently enjoy a competitive edge, they must remain vigilant to maintain their share of the advertising pie.

In summary, UK broadcasters are experiencing a unique moment as they navigate the challenges posed by U.S. streaming giants entering the ad market. As viewer behavior shifts and advertisers seek more effective strategies, the future of broadcasting in the UK could hinge on how well these entities adapt to the changing landscape. The ongoing competition in the ad-supported streaming space will likely shape the industry's trajectory in the coming years.