**Online Video Revenues Surpass Pay-TV for First Time in 2025**
In a significant milestone for the media landscape, online video revenues surpassed those of traditional pay-TV for the first time in 2025, according to a recent report by research firm Omdia. The report highlights a transformative shift in viewer preferences, with online video services solidifying their dominance in an increasingly digital world.
By the end of 2025, global online video subscriptions reached 2.24 billion, marking a substantial year-on-year increase of 17.6% from the 1.9 billion subscriptions recorded in 2024. This surge in subscriptions reflects a growing trend among consumers favoring streaming services over traditional pay-TV options. In contrast, global pay-TV subscriptions experienced a decline, falling by 1.8% to 1.03 billion.
The overall landscape of the television and video market is shifting, with online video now accounting for 68.4% of the combined 3.3 billion subscriptions worldwide. This shift underscores the increasing preference for flexible, on-demand viewing options that streaming platforms provide.
In terms of revenue, online video services generated $176 billion in 2025, an increase of 13.5% from the previous year. Meanwhile, pay-TV revenues decreased by 4% to $170 billion. These figures encompass both subscription and transactional income, excluding advertising revenue, and indicate a pivotal change in how consumers are choosing to spend their entertainment dollars.
Adam Thomas, Practice Leader for Omdia’s Media, Entertainment and Advertising team, noted that the 17.6% increase in subscriptions was the largest annual rise since 2021. This growth was particularly fueled by the introduction of subsidized advertising-supported subscription tiers, which have attracted a wave of new customers to online video platforms.
"The popularity of these lower-cost offers is a key factor behind the fact that subscription numbers grew by 17.6%, while revenue increased by a more moderate 13.5%," Thomas explained. This trend highlights a broader industry movement towards making streaming services more accessible, particularly for price-sensitive consumers.
Omdia's analysis also points to a strategic shift among streaming platforms, which are increasingly prioritizing revenue maximization from existing subscribers over merely expanding their subscriber base. This has often involved raising prices for premium subscription packages that do not include advertising. The company anticipates that this trend will continue to shape the market in the coming years.
Despite the significant growth in subscriber numbers due to discounted advertising-supported packages, Omdia warns that this may be a short-term phenomenon. As major online video markets approach saturation, the focus is expected to shift towards price increases and profit generation, potentially leading to slower subscriber growth in the future. For 2026, Omdia forecasts a more modest online video subscription growth rate of 5.6%.
Tony Gunnarsson, Senior Principal Analyst for TV and Online Video at Omdia, commented on the implications of these trends. "It’s clear that the availability of attractively priced ad-tier options created a temporary uplift in SVOD subscriber numbers in 2025. However, this has not changed our longer-term forecast, which remains for low single-digit annual growth rates for the foreseeable future," he stated.
As the media landscape continues to evolve, the competition between online video services and traditional pay-TV is likely to intensify. With consumer preferences shifting towards more flexible and affordable viewing options, the future of entertainment will increasingly be defined by the capabilities and offerings of streaming platforms. The trends observed in 2025 may serve as a precursor to further changes in how content is consumed and monetized in the years to come.