The U.S. streaming video market is set for a significant upswing, projected to surge by 33% to exceed $112 billion by 2029, according to the latest PwC forecast. This growth underscores the ongoing evolution of the entertainment landscape, marking a shift in consumer preferences towards digital platforms. The primary drivers include expanding subscriber numbers, new service offerings, and strategic pricing adjustments.
Growth in the OTT Market
The over-the-top (OTT) market in the United States is on track to grow at a compound annual rate of 5.9% over the next five years. This expansion is fueled by an increasing number of subscriptions and innovative service launches, leading to an anticipated market value of $112.7 billion by 2029. PwC identifies these factors as key contributors to the 33% rise from the $84.7 billion recorded last year.
Leading in Global Reach
The U.S. continues to dominate the global streaming video market, with expected revenues reaching $61.9 billion in transactional and subscription video-on-demand (VOD) by 2024. This figure starkly contrasts with the second-largest market, China, which generated only $10.8 billion. Despite its maturity, the U.S. market delivers robust growth, with subscription VOD revenue up by 18.3% year-over-year in 2024, reaching $56.1 billion.
Major Players and Strategic Shifts
Netflix remains a powerhouse in the subscription video space, boasting nearly 90 million subscribers in the U.S. and Canada by the end of 2024. With a $17 billion investment in global streaming content, Netflix leads its peers. Paramount+ and Disney+ also contribute significantly, each spending around $5 billion on content. As the market matures, focus shifts towards profitability through increased average revenue per user (ARPU), price adjustments, bundling, and ad-supported models.
The Rise of FAST Services
Free, ad-supported television (FAST) services in the U.S. are set to grow faster than the OTT market overall, increasing at a 13.8% compound annual rate. By 2029, revenue is expected to reach $9 billion, up from $4.9 billion in 2024. Key players like Pluto TV, Tubi, Roku Channel, and Samsung TV Plus are driving this surge, as major media companies invest more in ad-supported models to attract cost-conscious consumers.
Challenges for Traditional Media
Traditional TV is losing ground to streaming, with 2024 revenues dropping to $126.1 billion from $146.9 billion in 2020. Projections indicate further declines at a rate of -5.4% annually through 2029. The percentage of U.S. households with traditional pay-TV subscriptions is also falling, expected to drop to 28.8% by 2029.
Despite challenges, the U.S. streaming video market’s projected 33% increase by 2029 highlights the sector’s robust growth and the enduring appeal of digital platforms. As consumer behavior evolves, major players continue to adapt, investing in innovations that keep pace with the dynamic media landscape.
