Global online video subscriptions reached 2.24 billion in 2025, an increase of 17.6% year-on-year, driving $176 billion in revenue and surpassing pay-TV for the first time. This growth was largely attributed to the introduction of lower-cost, ad-supported tiers, although Omdia forecasts slower growth for 2026 as platforms shift focus from subscriber acquisition to revenue maximization through price increases.
The streaming market saw significant subscriber growth in 2025, with ad-supported options attracting new users and online video revenue outpacing pay-TV for the first time. However, this surge in subscriber numbers also highlights a revenue challenge: the lower cost of ad-supported tiers meant revenue growth lagged far behind subscriber growth. This dynamic is pushing platform strategies towards revenue maximization through premium tier price hikes and a reduced focus on aggressive subscriber acquisition. Industry players should monitor the balance between ad-tier subscriber growth and premium tier revenue generation, particularly how price increases on ad-free options impact overall churn and ARPU in 2026 and beyond.
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