According to an Omdia report, global online video subscriptions reached 2.24 billion and generated $176 billion in revenue by the end of 2025, surpassing pay-TV for the first time. The surge was primarily driven by the uptake of lower-cost, ad-supported streaming plans, though Omdia expects growth to slow from 2026 as markets mature and platforms shift toward revenue optimization over subscriber acquisition.
The streaming industry has decisively outpaced pay-TV in both subscriber volume and revenue, marking a critical inflection point. This shift highlights the success of lower-cost, ad-supported offerings in attracting new users, though at a lower average revenue per user. Service providers are now pivoting from aggressive subscriber acquisition to revenue optimization through price increases and fuller monetization of existing customers. Watch for how platforms balance ARPU growth with subscriber retention in increasingly saturated markets, particularly as growth rates normalize to low single digits in the coming years.
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