OTT Promised Freedom—But Ads Are Turning It Into Cable

Once heralded as the liberators of home entertainment, OTT platforms now find themselves morphing uncomfortably close to the very cable TV they once disrupted. The rise of ads across paid tiers is reshaping the streaming experience often not for the better.

Platforms like Netflix, Amazon Prime Video, Disney+, and local giants such as Hotstar and SonyLIV are aggressively embracing ad-supported tiers, even within traditionally premium user segments. Netflix’s ad plan, introduced in 2022, now accounts for over half of its sign-ups in ad-enabled markets, signaling a shift in user preferences. Meanwhile, Amazon Prime Video is introducing ads in India in 2025, promising fewer interruptions than standard TV but still disrupting the ad-free promise long associated with streaming.

This isn’t just happening, it’s becoming a structural model. The hybrid AVOD-SVOD format is gaining ground, especially in cost-sensitive markets. Audiences in Tier 2 and 3 cities increasingly favour free or low-cost ad-supported plans over expensive, ad-free subscriptions.

Yet the backlash is loud and clear. Viewers grumble about paying for a subscription only to endure recurring, unskippable ads. One frustrated user captured the sentiment perfectly: “I pay Rs 1,499 a year to not see ads—and now I must pay more to stop seeing them.” Across Reddit, complaints are rampant. The consistent message is clear: OTT is losing its edge. Where binge-watching once thrived uninterrupted, viewers now brace for multiple ad interruptions even on paid plans.

Yes, ads help platforms stay economically viable. But the real battle now lies in balance: streaming services must blend revenue needs with smart, minimally intrusive ad design to preserve what made OTT revolutionary to begin with.