North American streaming market shifts toward advertising-led model

The North American streaming market is shifting toward an advertising-dominated model. According to Ampere Analysis, ad-supported offerings are projected to generate over 54% of subscription-based OTT revenue in North America by the end of 2026, exceeding $45 billion.

Advertising revenues in the region are expected to surpass $18 billion this year, marking the first time they will account for more than one-fifth of subscription OTT revenues. North America currently leads the global market, accounting for nearly 60% of global ad-supported streaming revenue due to high average revenue per user (ARPU), superior cost per mille (CPM), and a mature connected TV (CTV) environment.

Major consumer brands such as Procter & Gamble, Amazon, and Walmart are expected to represent 22% of OTT advertising impressions in the United States by 2026. While Amazon Prime Video is positioned to dominate this segment—potentially generating $14 billion in 2026—competitors like Netflix and Disney+ are utilizing different third-party strategies to attract users.

This economic shift is also influencing content production. Between 2020 and 2025, the six largest global streamers doubled their orders for unscripted content in North America to create regular, easily consumable formats that align with advertising habits.