Online video revenue surpasses pay-TV for the first time

The global streaming industry has reached a historic milestone as online video revenue surpassed legacy pay-TV revenue for the first time. In 2025, online video revenue rose 13.5 percent to $176 billion, while pay-TV revenue fell 4 percent to $170 billion.

Global subscriptions to online video services reached 2.24 billion by the end of 2025, a 17.6 percent year-over-year increase. While this growth is significant, analysts note that much of the acceleration was driven by the expansion of advertising-supported tiers from platforms such as Netflix, Disney+, and Max, which attracted price-sensitive consumers.

The industry is currently undergoing a structural shift from a focus on subscriber growth to a focus on monetization and profit margins. Companies are increasingly prioritizing revenue per user through strategies including price increases on ad-free tiers, bundling services, and integrating live sports. For investors, the emphasis has moved toward operating margins and diverse revenue streams from both subscriptions and advertising.