The global video streaming landscape is undergoing a significant transformation, with 2025 marking the first year streaming revenue ($213 billion) is set to surpass pay TV ($188 billion). Major streaming platforms like Netflix, Disney+, Amazon Prime Video, Paramount+, and Max are embracing ad-supported tiers and bundled services, signaling a shift towards a “Pay TV 2.0” model, according to Tony Gunnarsson, senior principal analyst at Omdia.
Omdia’s 2025 Trends to Watch report highlights that the streaming wars are subsiding, making way for advertising-driven models. By 2025, the big five platforms are projected to amass 818 million global subscriptions, with nearly 30% (250 million) supported by ad tiers. Last year, 24% of U.S. subscription video-on-demand (SVoD) revenue came from ad-tier models, and this trend is expected to grow as consumer acceptance of ads increases.
This evolution mirrors traditional TV’s approach to distribution, pricing, and programming. Bundling services and partnering with local providers, rather than direct-to-consumer launches, is becoming the preferred strategy, particularly in markets like India, where pay TV remains dominant.
In India, pay TV revenues are expected to grow through the late 2020s, but streaming platforms may gain traction through hybrid models and localized content partnerships. The industry’s shift toward bundled services and ad-tier models addresses consumer demand for affordability and variety, positioning streaming as a formidable alternative to traditional TV.
“The industry needs to prioritize customer-centric solutions, replicating the simplicity of pay-TV offerings,” says Gunnarsson. With continued innovation, streaming platforms are set to redefine global entertainment consumption.
