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Streaming Triumphs Over Pay-TV: The Evolving Battle for Audiences
The year 2025 marked a historic turning point for the streaming industry, as it shattered records and solidified its dominance over traditional pay-television. On paper, the numbers reflect an unequivocal triumph: streaming now outpaces pay-TV in every conceivable metric, from subscriber count to revenue generation.
However, a comprehensive report by Omdia suggests that behind this apparent success lies a surprisingly delicate dynamic. The landscape is evolving rapidly, and the competition for each individual user is set to intensify, pushing streaming providers to adapt their strategies.
Table of Contents
- Streaming Dominates Pay-TV
- The Growing Influence of Ad-Supported Plans and Operators
- Monetizing the Existing Customer Base
Streaming Dominates Pay-TV
According to Omdia data, global subscriptions for online video services reached an impressive 2.24 billion by the end of 2025, representing a substantial 17.6% year-over-year increase. In stark contrast, traditional pay-TV subscribers declined by 1.8% to 1.03 billion, unequivocally confirming a continuous exodus of viewers from older, established platforms.
Cumulatively, the global television and video market accounted for approximately 3.3 billion subscriptions. Of this total, a significant 68.4% were attributed to online services, encompassing Subscription Video On Demand (SVOD) and hybrid models incorporating advertising.
The year 2025 was also pivotal financially, as streaming revenues surpassed those of pay-TV for the first time ever. Online video revenues surged by 13.5% to reach $176 billion, while pay-TV operator revenues experienced a 4% decline, settling at $170 billion.
It’s crucial to note that both figures refer to subscription and transactional revenues, excluding advertising income. This shift firmly establishes the Over-The-Top (OTT) services segment as the primary pillar of the global television and video market, leading in both customer volume and business value.
The Growing Influence of Ad-Supported Plans and Operators
Omdia analysts highlight that the substantial growth in subscriptions observed in 2025 was largely driven by the expansion of more affordable, ad-supported streaming packages. These plans enabled platforms to attract a broader user base by offering lower price points.
However, while subscriber numbers soared, revenue growth progressed at a slower pace. This disparity is attributed to the lower average revenue per user (ARPU) associated with ad-supported offerings compared to their ad-free counterparts. The introduction of these diverse pricing tiers, including those influenced by global streaming price adjustments, plays a critical role in market dynamics.
Consequently, although the 17.6% increase in subscriptions marked the highest growth since 2021, the momentum of revenue growth remained in the double digits but at a noticeably more moderate level.
Omdia suggests that 2025’s surge was more of a one-time impetus resulting from the aggressive rollout of ad-supported plans rather than a sustainable acceleration of the overall growth trend. Experts anticipate that the share of ad-supported subscriptions will continue to grow rapidly, potentially surpassing the number of subscribers to more expensive, ad-free offerings in the coming years. This also aligns with emerging trends in European TV and streaming advertising.
Monetizing the Existing Customer Base
By 2026, the global streaming market is projected to enter a more mature phase of development. Omdia forecasts that the annual growth rate for online video subscriptions will decelerate to 5.6% in 2026, with single-digit growth rates expected in subsequent years.
This deceleration is primarily due to the increasing saturation of key SVOD markets, where a significant majority of internet-enabled households already subscribe to at least one streaming service.
Therefore, the paramount strategy for future growth will involve monetizing the existing customer base. This means focusing on increasing revenue from current users through various methods, including:
- Price adjustments
- Diversification of package offerings
- More sophisticated segmentation of services and content
The second major driver for revenue growth will be advertising. According to Omdia’s projections, online video advertising is poised to become the primary engine of value expansion for the entire sector by 2030.
Frequently Asked Questions (FAQ)
The primary factors driving streaming growth include the aggressive expansion of more affordable, ad-supported subscription plans, the increasing demand for on-demand content, and a continuous shift of viewers away from traditional pay-TV services. Technological advancements and greater internet penetration also play significant roles.
Revenue growth lags behind subscriber growth primarily because a significant portion of new subscribers are opting for cheaper, ad-supported plans. While these plans attract more users, their average revenue per user (ARPU) is lower than that of premium, ad-free subscriptions, thus tempering overall revenue increases.
In a maturing market, streaming services will focus on “monetizing existing customers.” This involves strategies such as implementing price adjustments, diversifying their package offerings to cater to different segments, and enhancing content personalization. Additionally, online video advertising is expected to become a major revenue driver, significantly contributing to the sector’s growth by 2030.
SVOD stands for “Subscription Video On Demand.” It refers to services that offer unlimited access to a library of content for a recurring subscription fee, such as Netflix, Max, or Disney+.
Source: Omdia, Broadband TV News
Opening photo: Gemini
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