Online video revenues surpassed pay-TV for the first time in 2025, marking a significant milestone in the evolving landscape of media consumption. According to research from Omdia, global streaming subscriptions reached an impressive 2.24 billion, reflecting a remarkable year-on-year growth of 17.6 per cent.
Streaming Services on the Rise
The surge in online video subscriptions comes as traditional pay-TV services continued to experience a decline. Omdia’s data revealed that pay-TV subscriptions dropped by 1.8 per cent, settling at 1.03 billion by the end of 2025. This shift highlights the increasing preference for streaming services among consumers, as they seek more flexible and affordable options for entertainment.
Revenue Trends in the Media Sector
In terms of financial performance, online video services generated $176 billion in revenue during 2025, increasing by 13.5 per cent from the previous year. In contrast, pay-TV revenues fell by 4 per cent to $170 billion. Notably, these figures account for subscription and transactional income, excluding advertising revenue, which further emphasises the financial strength of online video platforms.
The Shift in Consumer Preferences
The continuous rise in online video subscriptions and revenues can be attributed to several factors. A key driver has been the introduction of lower-cost, advertising-supported subscription tiers. These options have attracted a wave of new customers to online video platforms, making content more accessible to price-sensitive audiences.
Adam Thomas, Practice Leader for the Media, Entertainment and Advertising team at Omdia, stated, “The 17.6 per cent increase in subscriptions in 2025 was the largest annual rise since 2021. This growth was driven, in particular, by subsidised ad-tier subscriptions offered by telecoms companies and pay-TV operators.” This strategic move by service providers has resonated well with consumers, leading to significant subscription growth.
Future Projections for Online Video
While the growth in subscriptions is impressive, Omdia anticipates a moderation in this trend moving forward. The market is expected to enter a more mature phase, with a predicted growth rate of 5.6 per cent for online video subscriptions in 2026. The company notes that as several major markets approach saturation, focusing on maximising revenue from existing customers will become a priority for streaming platforms.
Thomas further elaborated on this shift, indicating that many platforms are raising prices for premium subscription packages that do not include advertising. This strategy aims to enhance profitability as subscription growth slows. “The popularity of these lower-cost offers is a key factor behind the fact that subscription numbers grew by 17.6 per cent, while revenue increased by a more moderate 13.5 per cent,” he said.
Advertising-Supported Tiers and Their Impact
The introduction of attractively priced advertising-supported tiers has created a temporary uplift in subscription numbers, as highlighted by Tony Gunnarsson, Senior Principal Analyst for TV and Online Video at Omdia. “It’s clear that the availability of attractively priced ad-tier options created a temporary uplift in SVOD subscriber numbers in 2025,” he noted, while cautioning that this trend may not significantly alter long-term forecasts for growth.
As streaming platforms continue to adapt to consumer demands, the industry may witness a more pronounced shift towards these ad-supported models, particularly as they cater to the growing number of viewers seeking cost-effective alternatives. However, Omdia’s analysts remain cautious, maintaining that the long-term forecast for subscriber growth will likely settle into low single-digit annual rates.
A Broader Industry Perspective
Omdia’s analysis illustrates a broader trend across the media industry, where streaming services are recalibrating their strategies to focus on profitability rather than just subscriber acquisition. This evolution indicates a maturing market, where the emphasis is on enhancing the value proposition for existing subscribers rather than chasing new sign-ups at any cost.
As we look ahead, the landscape of television and video consumption is undoubtedly changing, with online video services now sitting at the forefront. This shift not only represents a change in how content is consumed but also highlights the evolving dynamics of the entertainment industry.
