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Because ad-supported plans tend to generate more revenues than ad-free plans, streamers are leaning into advertising. Subscription streaming services have had varied success in driving revenues through ads. Most subscription streaming services offer ad-free and ad-supported plans.

Digital ad spend tops $300 billion in 2024: Video dominates growth, driving display advertising's share and reshaping ad strategies through social and OTT.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

OTT video subscription revenues will hit $50.56 billion this year, an increase of 12.5% YoY, according to our forecast. Revenues will climb to $64.12 billion by the end of 2026.

In 2024, US digital pay TV services will make $15.41 billion in subscription revenues鈥攖hat鈥檚 nearly one-fourth of total subscription over-the-top (OTT) revenues and almost one-fifth of total pay TV subscription revenues. YouTube TV and Hulu + Live TV have grown their subscription revenue share. Prior to the pandemic in 2019, these services received half of US vMVPD subscription revenues.

Channel subscriptions through TV devices jumped 40% after YouTube simplified its interface with one-click subscription buttons. Creator revenues from TV-viewed content rose over 30%. Why it matters: YouTube's living room success is reshaping the streaming landscape. The platform has cemented its evolution from a mobile-first service to a legitimate competitor to linear TV.

Like most streaming services, Netflix generates more ARPU from its ad-supported plan than from its cheapest ad-free plan. Netflix will receive more than $5 per month in ad revenues per US viewer, according to our new forecast. Because multiple viewers tend to use a single subscription, this equates to more than $10 in monthly ad revenues per subscription.

CTV has become the primary gateway for popular OTT video streaming services, as well as a conduit for digital audio, gaming, and even accessing linear TV (via digital TV providers, formerly known as vMVPDs). This degree of success will mean limited topline CTV user growth going forward. Click here to view our full forecast for US CTV users. Almost everyone in the US lives in a CTV household.

It is one of the most common digital activities in the world, but many of these viewers won鈥檛 yet be watching OTT video via familiar platforms like YouTube or formats like paid sub OTT streaming鈥攁lso known as subscription video-on-demand (SVOD). OTT video entertainment is mainstream and available almost everywhere, but billions of people still haven鈥檛 come onboard.