The streaming services industry is undergoing significant transformations in 2025, driven by changing consumer behaviors, technological advancements, and evolving market dynamics. Here is a current state analysis of the industry:
Recent market movements indicate a shift towards ad-supported streaming. According to TiVo's research, 64% of consumers now use ad-supported subscription video-on-demand (AVOD) tiers, up 16 points from the previous year[2]. This trend is expected to continue, with major players like Netflix and Disney+ exploring ad-supported models to address consumer demand for value and flexibility.
The industry is also witnessing a rise in bundling strategies. Broadband providers are packaging streaming services to retain subscribers, with 62% of respondents more likely to maintain internet service when additional streaming services are included[2]. This approach is gaining traction, with new streamer bundles from major Internet providers like Charter and Comcast expected to gain popularity in 2025[1].
Emerging competitors are making their mark, particularly in the free ad-supported streaming television (FAST) space. Platforms like Tubi and FreeVee are experiencing significant growth, with a 150% increase in global sports channel viewership on FAST platforms[2]. This trend underscores the potential for new audience engagement and revenue opportunities.
In terms of new product launches, streaming platforms are expanding beyond live sports to offer more appointment viewing like comedy specials, concerts, and political events[1]. This shift highlights streaming's unique power to create cultural moments and draw advertisers to capitalize on shared experiences.
Regulatory changes are also on the horizon. The industry is expected to see increased focus on establishing standards for the delivery of short-form videos and live streams on social platforms[1]. Initiatives like Media Over Quic and SVTA working groups are steps in the right direction.
Consumer behavior is undergoing significant shifts. According to Hub Entertainment Research, 46% of viewers now turn first to subscription video-on-demand (SVOD) services, compared to 38% who default to live TV[2]. This milestone comes as streaming captures a record 41.6% share of television viewing time.
Industry leaders are responding to current challenges by embracing innovation and flexibility. For instance, Disney+ is expected to test the waters by offering select services on Amazon Channels to broaden their reach and increase engagement[1]. Similarly, streaming platforms are exploring hybrid architectures that combine global reach, quality of experience (QoE)-based automated infrastructure switching, reserved capacity, improved security, and a seamless user interface[1].
In comparison to previous reporting, the industry has made significant strides in addressing consumer demand for value and flexibility. The rise of ad-supported streaming and bundling strategies are key developments that are expected to shape the industry in 2025. As the streaming landscape continues to evolve, industry leaders must remain agile and responsive to changing consumer behaviors and technological advancements.
Statistics and data from the past week include:
- 64% of consumers now use ad-supported subscription video-on-demand (AVOD) tiers, up 16 points from the previous year[2].
- 62% of respondents are more likely to maintain internet service when additional streaming services are included[2].
- 46% of viewers now turn first to subscription video-on-demand (SVOD) services, compared to 38% who default to live TV[2].
- Streaming captures a record 41.6% share of television viewing time[2].
- FAST platforms report a 150% increase in global sports channel viewership[2].