What's Happening?
Omdia's latest market data reveals that global online video subscriptions reached 2.24 billion by the end of 2025, marking a 17.6% increase from 1.9 billion in 2024. This growth is attributed to the introduction of lower-cost, ad-supported subscription tiers
by telcos and pay-TV operators, which have attracted a significant number of new subscribers. Despite this surge, Omdia forecasts a slowdown in growth to single digits in 2026 as the market matures. The shift towards streaming continues, with online video now accounting for 68.4% of the total 3.3 billion global TV and video subscriptions. In terms of revenue, online video surpassed pay-TV for the first time in 2025, with a 13.5% increase to $176 billion, while pay-TV revenue declined by 4% to $170 billion.
Why It's Important?
The significant increase in online video subscriptions highlights a major shift in consumer preferences towards streaming services over traditional pay-TV. This trend is reshaping the media landscape, with implications for content providers, advertisers, and consumers. The rise of ad-supported tiers indicates a growing demand for affordable streaming options, which could influence pricing strategies across the industry. As the market approaches saturation, companies may focus on maximizing revenue from existing subscribers through price increases for premium services. This shift could impact consumer choices and the competitive dynamics among streaming platforms, potentially leading to further consolidation in the industry.
What's Next?
As the online video market matures, companies are likely to prioritize revenue growth over subscriber numbers. This could involve increasing prices for premium, non-ad-supported tiers, which may affect consumer satisfaction and retention. Additionally, the focus on ad-supported models may lead to more targeted advertising strategies, influencing how content is monetized. Industry stakeholders will need to adapt to these changes, balancing the need for profitability with consumer demand for affordable options. The anticipated slowdown in subscription growth may also prompt companies to explore new markets or diversify their offerings to sustain growth.
