The streaming video market will continue to experience financial growth over the next few years, despite signs that subscriber counts have largely peaked among the biggest players like Netflix, according to a new report released by PricewaterhouseCoopers (PwC) this week.
The accounting firm says the compound annual growth rate, or CAGR, among streaming platforms in the United States is expected to increase by as much as 6 percent over the next five years, fueled by ongoing consumer shifts away from traditional pay TV platforms in favor of streaming and the transfer of entertainment, news and sports rights between the two sectors.
In its 2025 Global Entertainment & Media Outlook report, PwC projects the U.S. over-the-top (OTT) video segment will reach $112.7 billion in revenue by 2029, up from $84.7 billion in 2024. That growth is driven by subscriber increases, new service launches and higher prices.
PwC said the United States continues to be the “largest and most-influential” market for the entertainment and video industries, with nearly $62 billion in transactional and subscription video on-demand (SVOD) revenue recorded last year alone. That was nearly six times larger than the second-biggest market, China, which raked in just shy of $11 billion.
While there are signs that some of the biggest streaming players like Netflix, Disney Plus and Amazon’s Prime Video are starting to see their subscriber counts peak (to the point where some have decided to stop reporting them altogether), PwC said the streaming industry as a whole continues to experience growth, especially among smaller, specialty and niche streaming services.
Subscription VOD revenue rose by 18.3 percent to $56.1 billion in 2024. OTT subscriptions increased by 9.5 percent, with revenue per subscription climbing 8 percent.
Netflix continues to be the biggest player in the North America, with 90 million paying subscribers in the U.S. and Canada, PwC said. Netflix stopped reporting subscriber counts earlier this year, choosing instead to focus on engagement as a key growth metric; at last count, Netflix had more than 300 million global paying subscribers, suggesting that one in four customers lives in the U.S. or Canada.
Netflix has invested significantly in original content, committing more than $17 billion in film and TV production this year alone, far outpacing its rivals. By comparison, Disney has committed around $25 billion this year, PwC said, noting that nearly half of its spending was focused on sports programming for ESPN and ABC. Paramount has committed $5 billion, some of which is focused on live sports rights.
A common theme among streaming businesses is a focus on profitability, with companies setting goals to achieve higher average revenue per user, or ARPU. Again, some companies have chosen to stop disclosing ARPU publicly, but that doesn’t mean they’re less focused on it internally, PwC offered, noting that some players like Netflix, Disney, Paramount and — most recently — Comcast’s Peacock have effectuated price increases that are intended to push customers on their cheaper, ad-supported plans. In doing so, companies earn revenue twice off a single customer — first from the monthly or annual fee, and again from exposure to ads.
Cracking down on passwords is another strategy, with companies like Netflix, Disney and Warner Bros Discovery (WBD) exploring ways to boot freeloaders from their services. Most companies are pushing freeloaders toward cheap, ad-supported tiers, while others are allowing current customers to pay extra for the privilege of sharing their passwords with someone who lives outside their home.
Live sports emerged as a key subscriber acquisition tool in 2024. The Super Bowl brought in 3.2 million new subscribers for Paramount+, the Paris Olympics delivered 1.8 million for Peacock, and Netflix added 1.4 million signups for the Jake Paul vs. Mike Tyson fight in November.
The free ad-supported television (FAST) market is also accelerating, outpacing OTT growth overall. FAST services generated $4.9 billion in U.S. revenue in 2024 and are projected to grow at a 13.8 percent CAGR to reach $9 billion by 2029. Key players include Paramount’s Pluto TV, Fox’s Tubi, The Roku Channel and FAST platforms from TV manufacturers like Samsung TV Plus and LG Channels.
“As major media companies recognize the value in ad-supported models, investments in content and technology are likely to increase, enhancing the quality and appeal of FAST services,” PwC said in its report. “FAST channels appeal to cost-conscious consumers amid rising subscription fees.”
By contrast, traditional television continues to shrink. U.S. linear TV advertising and pay-TV subscription revenues fell to $126.1 billion in 2024, down 14 percent from $146.9 billion in 2020. PwC projects a further CAGR decline through 2029, with TV ad revenue down nearly 6 percent, marking one of the steepest declines among global markets.
