Omdia reports that global online video subscriptions reached 2.24 billion in 2025, an increase of 17.6% year-over-year, and online video revenue surpassed pay TV for the first time. The report forecasts a slowdown in growth to 5.6% in 2026 as the market matures, with a shift towards maximizing revenue from existing customers through price increases and ad-supported tiers.
The streaming industry is exiting a hyper-growth phase, with subscriber acquisition becoming more challenging. The 17.6% growth in 2025, driven by ad-supported tiers, indicates significant demand for lower-cost options, even as platforms pivot to higher ARPU strategies. This shift suggests a critical juncture where subscriber volume is less of a focus than profitability per user, pushing providers to diversify revenue streams beyond pure subscription. Executives should monitor the retention rates of ad-supported tier subscribers as price increases for premium tiers become more prevalent.
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