Streaming video subscription revenues overtaking pay TV

Revenues from streaming video subscription services, including digital pay TV, will next year overtake traditional pay TV subscriptions in the US for the first time, according to a forecast by market research firm EMarketer.

Streaming services will account for more than half (53.5%) of US video subscription revenues by 2025, when it will reach $71.92 billion, according to the forecast..

Traditional pay TV subscription revenues will continue to decline through the end of the forecast period in 2027.

“OTT (streamed content services) subscription revenue growth will slow to single digits next year, as streaming reaches a saturation point, with subscription OTT viewers accounting for nearly three-quarters (73.8%) of internet users this year.”

Netflix is forecasted to generate more than $14 billion in US OTT subscription revenues 2024, more than any other company. Disney will come closest to Netflix, but that’s after Disney+, Hulu, and ESPN+ revenues are combined. Netflix will account for more than one-fifth of total OTT subscription revenues this year.

An overwhelming 99% of US households now subscribe to at least one or more streaming services, with Netflix, Amazon Prime Video and Apple TV+ topping the charts, Forbes Home and market research company OnePoll report.

Market research firm Statista says user penetration rate, which measures the proportion of the population using video streaming services, is expected to be 18.3% worldwide in 2024 and is projected to reach 20.7% by 2027.

“This signifies the potential for further market expansion and penetration in the coming years.” Moonshot