What's Happening?
The U.S. streaming video market is projected to grow significantly over the next five years, according to PwC's Global Entertainment & Media Outlook report. The market is expected to increase at a compound annual growth rate of 5.9%, reaching $112.7 billion by 2029, up from $84.7 billion last year. Key drivers of this growth include a rising subscriber base, new service launches, and price increases. Despite being a mature market, the U.S. continues to deliver double-digit revenue growth, with subscription video on demand revenue rising by 18.3% year-over-year in 2024. Netflix remains the industry leader with nearly 90 million subscribers in the U.S. and Canada.
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Why It's Important?
The projected growth of the U.S. streaming video market underscores the sector's ongoing transformation and its impact on traditional media. As streaming platforms focus on profitability, strategies such as subscription price increases, bundling, and ad-supported models are becoming more prevalent. This shift is likely to affect consumer choices and media consumption patterns, with traditional TV losing ground to streaming alternatives. The expansion of free, ad-supported television services also highlights a growing demand for cost-effective content options, which could reshape advertising strategies and media investments.
What's Next?
Streaming platforms are expected to continue refining their business models to enhance profitability in the U.S. market. This includes implementing password-sharing restrictions, expanding market reach, and adopting ad-supported video on demand. The growth of free, ad-supported television services is anticipated to outpace overall OTT growth, driven by investments in content and technology. As traditional TV subscriptions decline, operators may focus on broadband services and sports programming to sustain revenue.
