The streaming services industry is undergoing significant transformations, driven by shifting consumer behaviors, technological advancements, and evolving business models. Recent market movements indicate a continued growth trajectory, with the global media streaming market projected to increase from $135.03 billion in 2024 to $146.52 billion in 2025, at a compound annual growth rate (CAGR) of 8.5%[4].
A pivotal development in 2025 is the forecasted surpassing of commercial broadcasters by streaming platforms in content spending for the first time. According to Ampere Analysis, streaming services are expected to invest $95 billion in content, accounting for 39% of total global spending, while global content spend is predicted to rise by 0.4% year-over-year to $248 billion[1].
The industry is also witnessing a shift towards ad-supported models, with major players like Disney+, Netflix, and Amazon Prime Video introducing hybrid tier offerings that combine lower subscription fees with ad viewing. This trend is expected to continue, with global advertising VOD (AVOD) revenue growing at double-digit rates through 2028, reaching 28% of global streaming revenues by then[3].
Consumer behavior is a critical factor driving these changes. The flexibility and convenience offered by streaming services have led to a decline in traditional TV viewership, with many consumers "cutting the cord" in favor of on-demand content[2]. Personalization is also becoming increasingly important, with 31% of survey respondents citing easy, personalized content recommendations as a reason for staying with a streaming service[5].
In response to these challenges, industry leaders are adapting their strategies. For example, Disney and Warner Bros. Discovery have teamed up to offer bundled services, while Comcast is offering a service called StreamSaver, bundling Peacock, Netflix, and Apple TV+[3]. Additionally, there is a growing trend towards consolidation, particularly in emerging markets like India, where the fragmented OTT market is ripe for consolidation[3].
Overall, the streaming services industry is navigating a complex landscape of changing consumer preferences, evolving business models, and technological advancements. As the industry continues to grow, it is crucial for leaders to stay agile and responsive to these shifts, leveraging data and consumer insights to drive innovation and success.