The Maturing Streaming Market According to AlixPartners, the global subscription over-the-top (OTT) market will surpass $165 billion in 2026, but with roughly 130 streaming companies chasing the same foundational value levers, there is only so much to go around . The top five platforms—Netflix, Disney+ with Hulu and ESPN+, Amazon Prime Video, YouTube TV, and HBO Max—combine to generate nearly two thirds of current global subscription revenues .
Netflix is forecast to reach nearly 400 million subscribers worldwide by the end of 2031, reinforcing its position as the world’s leading subscription streaming platform . Omdia also forecasts that Netflix’s monthly audience will exceed one billion viewers by 2027 . “The streaming market is entering a new phase in which scale and sustainability are becoming increasingly important,” said Maria Rua Aguete, Head of Media & Entertainment at Omdia .
Ad-Supported Tiers Drive Growth Ad-supported tiers are projected to account for all SVOD subscription growth in 2026, growing from nearly 363 million in the U.S. in 2025 to nearly 376 million in 2026 . At the same time, subscriptions to ad-free premium tiers are projected to fall slightly from 280 million in 2025 to 279 million in 2026 .
According to Parks Associates, 34% of subscribers to ad-supported tiers say “the lower monthly price makes SVOD services more affordable,” while an additional 31% “do not mind ads if it saves them money” . Affordability is becoming a significant factor in SVOD subscription growth, providing an alternative to cancellation .
Bundling and Consolidation Bundling is increasing as services that are raising prices look to offer more value for price-conscious consumers . Instead of subscribing to services individually, a growing segment of the population will buy a bundle of SVOD services, either through the services themselves, TV providers, or broadband/mobile bundles, as this helps mitigate price increases and reduce churn .
On the live-TV side, more skinny and genre-specific bundles such as sports, news, and entertainment are expected . The U.S. market is seeing cooperation centered on DTC bundles and third-party aggregators. Telcos and retailers are bundling competing services like Netflix and HBO Max, while platforms such as Amazon Channels and YouTube Primetime integrate multiple SVODs into single ecosystems .
Consumer Behavior According to Parks Associates, U.S. SVOD households subscribed to an average of 5.9 SVOD services in 2025, up from 5.6 in 2024 . The average is expected to grow slightly to 6 in 2026, driven largely by bundling and discounted promotional rates . After falling 2.6% in 2025 to an average of $10.96 as cheaper ad-supported tiers took hold, average revenue per SVOD service will once again grow in 2026, reaching $11.30 by the end of the year .
Free ad-supported streaming television (FAST) channels have emerged as a critical complement, offering a low-barrier entry point for consumers while generating new advertising revenue streams . In a 2025 survey, Parks Associates found that consumers’ use of free ad-based services had doubled over the past six years, from 23% in the first quarter of 2023 to 46% in the third quarter of 2025 .
The Impact of Consolidation on Content According to Parks’ Michael Goodman, “streaming consolidation is likely to mean fewer shows overall, with budgets and attention concentrated on bigger, safer bets” . Mid-budget and niche originals are more likely to be cut, shows will be given less of a chance to prove themselves and will be canceled faster, and franchises, sequels and event programming that can travel globally and reduce churn will be prioritized .
As ad-supported tiers grow, platforms will favor “sticky content like procedurals, reality and comfort TV that drive long viewing sessions, while libraries become less permanent as titles rotate in and out for cost control” . While there may be occasional mega-hits, overall there will be less experimentation and less catalog stability for viewers .
