The streaming services industry is undergoing significant transformations as it continues to evolve and adapt to changing consumer behaviors and market dynamics. Recent market movements indicate a strong shift towards ad-supported models, with Ampere Analysis projecting that the U.S. streaming market will approach $17 billion in advertising revenue this year[1]. This growth is driven by the increasing popularity of ad-funded video on-demand services such as AVOD and BVOD, as well as linear FAST channels and social video services like YouTube.
Consumer behavior is also shifting, with more users opting for ad-supported subscription plans. According to Ampere data, 24% of U.S.-based Netflix subscribers are on the Standard with Ads tier, and 14% of U.S.-based Disney+ subscribers are on the Basic ad-supported tier[1]. This trend is expected to continue, with PwC estimating that advertising will account for about 28% of global streaming revenues by 2028, up from 20% in 2023[1].
In response to these changes, industry leaders are adapting their strategies. Netflix, for example, has increased its original content spend for 2025 by $1 billion to $18 billion and has introduced new price increases, taking its ad-supported tier from $6.99 to $7.99 per month[1]. Disney+ and other streamers are also experimenting with ad-funded tiers and live events to boost engagement and revenue[2].
Bundling is another key strategy emerging in 2025, with content providers teaming up with resellers to deliver value-packed bundles that attract and retain customers[2]. This approach is driven by the need to provide greater value and increase stickiness with consumers. According to Bango research, one in five subscribers in the U.S. exclusively signed up through indirect channels in 2024, highlighting the importance of bundling[2].
The rise of live events, particularly sports, is also becoming crucial for streaming services. Amazon, Apple TV+, and Netflix are investing heavily in live sports content to deliver continuous engagement and real-time community experiences that attract large, captive audiences willing to sit through ads[2].
In conclusion, the streaming services industry is experiencing significant shifts in consumer behavior, market dynamics, and strategic responses from industry leaders. The growth of ad-supported models, bundling, and live events are key trends shaping the industry in 2025. As the industry continues to evolve, it is essential for streaming services to balance content offerings with price hikes and invest in strategies that justify subscription costs and provide value to consumers.