Streaming is poised to surpass pay TV globally in 2025, with ad-supported tiers and bundles driving this shift. For the first time, global streaming video revenue is set to outpace pay TV, generating $213 billion compared to $188 billion. Major subscription-based streaming services have introduced ad-supported options, signaling a move toward offering more free content and adopting TV-like distribution, pricing, and programming strategies.

Tony Gunnarsson, an analyst at Omdia, notes that the top five U.S. streaming platforms—Netflix, Disney+, Paramount+, Amazon Prime Video, and Max—are increasingly resembling traditional pay TV. With the inclusion of ad-supported tiers, sports content, and bundled offerings, these services are evolving to a more TV-centric model.

Omdia’s "2025 Trends to Watch" report suggests that the battle for dominance among streaming platforms is shifting, with advertising playing a pivotal role. Subscription bundles, replacing the traditional single-service model, are expected to shape the future of streaming.

However, India’s landscape will be different. Gunnarsson predicts that pay TV will continue to dominate revenue in India through the late 2020s, and it may even grow in the coming years. The report highlights how streaming is adopting more TV-like features, including the rise of ads. By 2025, the top five streaming platforms are expected to have 818 million paid subscriptions globally, with around 250 million (30%) on ad-supported plans.

In the U.S., 24% of streaming revenue came from ads last year, and most entry-level subscriptions now feature ads. The report also suggests that viewers are becoming more accepting of ads as this trend expands.

As streaming services move into new markets, global platforms are shifting from direct-to-consumer models to partnerships with local providers, such as pay-TV operators or other streaming platforms. For instance, HBO Max has yet to launch in India and will likely follow this trend of collaborating with local services, given India’s reliance on ad-supported models.

Gunnarsson points out that in the West, direct-to-consumer models have struggled, and bundling and packaging services are more effective in meeting customer needs. Until streaming services offer a more TV-like experience, competition will remain fierce across the industry.