Online Video Subscriptions Hit 2.24 Billion in 2025, Driven by Ad-Tiers
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.
Key Takeaways
- Global online video subscriptions grew 17.6% year-on-year to 2.24 billion by end of 2025.
- Online video revenue reached $176 billion in 2025, exceeding pay-TV revenue ($170 billion) for the first time.
- Ad-supported tiers were primary drivers for the 2025 subscription surge, leading to a larger subscription growth (17.6%) than revenue growth (13.5%).
- Omdia forecasts slower subscription growth in 2026 (5.6%) as platforms shift from acquisition to revenue maximization via price increases for premium tiers.
Why It Matters
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.
Read full article at communicationstoday.co.in
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