Ampere Analysis predicts that streaming revenue will surpass pay-TV subscription revenue in the U.S. for the first time in the third quarter of 2024, totaling $17.3 billion compared to pay TV's $16.7 billion.
Hollywood Reporter reveals that the streaming revenue was propelled by various streamers' introduction of ad tiers, heralding a transformation in the entertainment landscape.
The analysis forecasts that streaming's ascendancy will persist as traditional pay TV declines, with pay TV value anticipated to halve by 2028 from its peak in 2017, reflecting shifting consumer preferences and the growing dominance of digital platforms.
The Future of Streaming Services
Rory Gooderick, senior analyst at Ampere, remarked, "Most major streaming services in the U.S. have launched their hybrid advertising tiers, which, along with increasing clampdowns on password sharing, have been successful at reigniting growth in the streaming market."
The integration of ad-supported tiers across streaming platforms, including recent ventures like Amazon Prime Video's new advertising tier, is identified as a primary driver of revenue growth, with streaming advertising revenue projected to exceed $9 billion in the U.S. this year alone, reinforcing the viability of diverse revenue models in the streaming sector.
Aside from advertising tiers, streaming services are also expanding their reach through collaboration. Earlier this year, VCPost reported that ESPN, Fox, and Warner Bros will be collaborating to provide sports streaming entertainment to the audience.
Not just that, the collaboration between Disney and Charter also allowed millions of Charter subscribers access to Disney+'s advertising tier.
These exemplify strategic partnerships aimed at maximizing streaming's reach while underscoring the enduring role of traditional distribution platforms in aggregating services and retaining subscribers.
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