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Streaming Services Adapt to Rising Costs and Shifting Behaviors
The streaming services industry is undergoing significant changes as it continues to evolve and adapt to shifting consumer behaviors and economic pressures. Recent market movements indicate a strong growth trajectory, with the global media streaming market expected to reach $146.52 billion in 2025, up from $135.03 billion in 2024, at a compound annual growth rate (CAGR) of 8.5%[1].
However, this growth is accompanied by rising costs for consumers. Streaming TV prices are projected to climb even higher in 2025, with some subscriptions nearing the cost of traditional cable. For example, YouTube TV, which launched at $35 monthly in 2017, is expected to reach $83 per month starting in 2025[5]. Similarly, Peacock increased its premium subscription to $80 per year in July, and Disney+, Hulu, and ESPN+ announced price hikes in October.
In response to these economic pressures, streaming services are exploring new revenue streams beyond subscriptions. The introduction of ad-funded 'hybrid tier' offerings is becoming more prevalent, with major players like Disney+, Netflix, and Amazon Prime Video rolling out such tiers. This shift is driven by the need to balance revenue growth with consumer affordability. According to PwC, global advertising VOD (AVOD) revenue will continue to grow at double-digit rates through 2028, with advertising accounting for about 28% of global streaming revenues by 2028, up from 20% in 2023[3].
Consumer behavior is also shifting, with a growing preference for ad-supported subscription video-on-demand (AVOD) tiers. TiVo's research shows that 64% of consumers now use AVOD tiers, up 16 points from the previous year[4]. Bundling has emerged as another strategy, with broadband providers packaging streaming services to retain subscribers. Research indicates that 62% of respondents are more likely to maintain internet service when additional streaming services are included.
The industry is also witnessing consolidation efforts, particularly in fragmented markets like India. Disney's Star India struck a $8.5 billion merger with Viacom18 in February 2024, highlighting the trend towards consolidation in the OTT space[3].
In conclusion, the streaming services industry is navigating a complex landscape of rising costs, shifting consumer behaviors, and evolving business models. Industry leaders are responding to these challenges by exploring new revenue streams, adapting pricing strategies, and consolidating operations. As the industry continues to evolve, it is crucial for companies to maintain a balance between revenue growth and consumer affordability to ensure long-term sustainability.
However, this growth is accompanied by rising costs for consumers. Streaming TV prices are projected to climb even higher in 2025, with some subscriptions nearing the cost of traditional cable. For example, YouTube TV, which launched at $35 monthly in 2017, is expected to reach $83 per month starting in 2025[5]. Similarly, Peacock increased its premium subscription to $80 per year in July, and Disney+, Hulu, and ESPN+ announced price hikes in October.
In response to these economic pressures, streaming services are exploring new revenue streams beyond subscriptions. The introduction of ad-funded 'hybrid tier' offerings is becoming more prevalent, with major players like Disney+, Netflix, and Amazon Prime Video rolling out such tiers. This shift is driven by the need to balance revenue growth with consumer affordability. According to PwC, global advertising VOD (AVOD) revenue will continue to grow at double-digit rates through 2028, with advertising accounting for about 28% of global streaming revenues by 2028, up from 20% in 2023[3].
Consumer behavior is also shifting, with a growing preference for ad-supported subscription video-on-demand (AVOD) tiers. TiVo's research shows that 64% of consumers now use AVOD tiers, up 16 points from the previous year[4]. Bundling has emerged as another strategy, with broadband providers packaging streaming services to retain subscribers. Research indicates that 62% of respondents are more likely to maintain internet service when additional streaming services are included.
The industry is also witnessing consolidation efforts, particularly in fragmented markets like India. Disney's Star India struck a $8.5 billion merger with Viacom18 in February 2024, highlighting the trend towards consolidation in the OTT space[3].
In conclusion, the streaming services industry is navigating a complex landscape of rising costs, shifting consumer behaviors, and evolving business models. Industry leaders are responding to these challenges by exploring new revenue streams, adapting pricing strategies, and consolidating operations. As the industry continues to evolve, it is crucial for companies to maintain a balance between revenue growth and consumer affordability to ensure long-term sustainability.
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By Quiet. PleaseThe streaming services industry is undergoing significant changes as it continues to evolve and adapt to shifting consumer behaviors and economic pressures. Recent market movements indicate a strong growth trajectory, with the global media streaming market expected to reach $146.52 billion in 2025, up from $135.03 billion in 2024, at a compound annual growth rate (CAGR) of 8.5%[1].
However, this growth is accompanied by rising costs for consumers. Streaming TV prices are projected to climb even higher in 2025, with some subscriptions nearing the cost of traditional cable. For example, YouTube TV, which launched at $35 monthly in 2017, is expected to reach $83 per month starting in 2025[5]. Similarly, Peacock increased its premium subscription to $80 per year in July, and Disney+, Hulu, and ESPN+ announced price hikes in October.
In response to these economic pressures, streaming services are exploring new revenue streams beyond subscriptions. The introduction of ad-funded 'hybrid tier' offerings is becoming more prevalent, with major players like Disney+, Netflix, and Amazon Prime Video rolling out such tiers. This shift is driven by the need to balance revenue growth with consumer affordability. According to PwC, global advertising VOD (AVOD) revenue will continue to grow at double-digit rates through 2028, with advertising accounting for about 28% of global streaming revenues by 2028, up from 20% in 2023[3].
Consumer behavior is also shifting, with a growing preference for ad-supported subscription video-on-demand (AVOD) tiers. TiVo's research shows that 64% of consumers now use AVOD tiers, up 16 points from the previous year[4]. Bundling has emerged as another strategy, with broadband providers packaging streaming services to retain subscribers. Research indicates that 62% of respondents are more likely to maintain internet service when additional streaming services are included.
The industry is also witnessing consolidation efforts, particularly in fragmented markets like India. Disney's Star India struck a $8.5 billion merger with Viacom18 in February 2024, highlighting the trend towards consolidation in the OTT space[3].
In conclusion, the streaming services industry is navigating a complex landscape of rising costs, shifting consumer behaviors, and evolving business models. Industry leaders are responding to these challenges by exploring new revenue streams, adapting pricing strategies, and consolidating operations. As the industry continues to evolve, it is crucial for companies to maintain a balance between revenue growth and consumer affordability to ensure long-term sustainability.
However, this growth is accompanied by rising costs for consumers. Streaming TV prices are projected to climb even higher in 2025, with some subscriptions nearing the cost of traditional cable. For example, YouTube TV, which launched at $35 monthly in 2017, is expected to reach $83 per month starting in 2025[5]. Similarly, Peacock increased its premium subscription to $80 per year in July, and Disney+, Hulu, and ESPN+ announced price hikes in October.
In response to these economic pressures, streaming services are exploring new revenue streams beyond subscriptions. The introduction of ad-funded 'hybrid tier' offerings is becoming more prevalent, with major players like Disney+, Netflix, and Amazon Prime Video rolling out such tiers. This shift is driven by the need to balance revenue growth with consumer affordability. According to PwC, global advertising VOD (AVOD) revenue will continue to grow at double-digit rates through 2028, with advertising accounting for about 28% of global streaming revenues by 2028, up from 20% in 2023[3].
Consumer behavior is also shifting, with a growing preference for ad-supported subscription video-on-demand (AVOD) tiers. TiVo's research shows that 64% of consumers now use AVOD tiers, up 16 points from the previous year[4]. Bundling has emerged as another strategy, with broadband providers packaging streaming services to retain subscribers. Research indicates that 62% of respondents are more likely to maintain internet service when additional streaming services are included.
The industry is also witnessing consolidation efforts, particularly in fragmented markets like India. Disney's Star India struck a $8.5 billion merger with Viacom18 in February 2024, highlighting the trend towards consolidation in the OTT space[3].
In conclusion, the streaming services industry is navigating a complex landscape of rising costs, shifting consumer behaviors, and evolving business models. Industry leaders are responding to these challenges by exploring new revenue streams, adapting pricing strategies, and consolidating operations. As the industry continues to evolve, it is crucial for companies to maintain a balance between revenue growth and consumer affordability to ensure long-term sustainability.