SVOD projected to exceed $108B by 2026 amid sustained demand

The sustained growth forecast for SVOD revenue underscores its continued importance as a primary monetization strategy in streaming. This indicates a consistent consumer willingness to pay for ad-free access to extensive content libraries. Platforms must evaluate their content strategy—specifically library size and niche focus—to determine SVOD viability and implement effective paywall management. We will watch for shifts in average revenue per user (ARPU) across different subscription tiers and the rate of new SVOD service launches.

The transition to streaming maturity was cemented in 2025 as global online video revenue reached $176 billion, overtaking pay-TV revenue for the first time in history, per Omdia (June 2026). This shift was largely powered by a 17.6% surge in total subscriptions, which hit 2.24 billion worldwide by the end of 2025. Despite total revenue growth, the industry faces significant pressure on average revenue per user (ARPU). Antenna reported in March 2025 that while the top nine U.S. SVOD services added 174.3 million subscribers in 2024, they simultaneously saw 147.8 million cancellations, resulting in a net gain of just 26.5 million users—the lowest in three years. This 'subscription paradox' has driven a 22.8% average price hike for ad-free tiers, rising from $11 to $14 between 2022 and 2024 (per StreamTV Insider). Consequently, ad-supported tiers have become the dominant growth vehicle, accounting for 45% of all new U.S. sign-ups in 2024 compared to 36% in 2023. Per Forbes (March 2025), bundling is proving to be the most effective hedge against this volatility; the Disney+, Hulu, and Max bundle maintained an 80% three-month retention rate, significantly higher than standalone services. As major markets reach saturation, Omdia expects global subscription growth to ease into single digits (5.6%) by late 2026, forcing a definitive industry focus on profitability over expansion.