North American streaming advertising market evolution

The North American streaming market is undergoing a structural transition toward an advertising-led model. Projections indicate that ad-supported offerings could generate over 54% of subscription-based OTT revenue in the region by the end of 2026, exceeding $45 billion. Advertising revenue alone is expected to surpass $18 billion this year, marking the first time it 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, superior cost per mille, and a mature connected TV environment.

Major consumer brands, including Procter & Gamble, Amazon, and Walmart, are expected to represent 22% of U.S. OTT advertising impressions by 2026. Amazon Prime Video is positioned to lead this segment, with projected revenues of over $14 billion by 2026. In contrast, Netflix and Disney+ utilize models where users choose between premium ad-free tiers and cheaper ad-supported options, though Disney+ is reportedly considering a free, limited-access tier.

This economic shift is influencing content strategies; between 2020 and 2025, the six largest global streamers doubled their orders for unscripted content in North America to align with advertising habits. Netflix has reported nearly doubling its advertising commitments following its 2026 U.S. Upfront negotiations, driven by demand for live sports—such as NFL, MLB, WWE, and the 2027 FIFA Women’s World Cup—and high-profile franchises like ‘Bridgerton’. To facilitate growth, Netflix has expanded its programmatic buying capabilities and received Media Rating Council accreditation for its U.S. in-stream video impression reporting.