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Streaming platforms are raising subscription costs and tempering spending on content as their strategies evolve the maturing market, according to a new report.
The 2025 edition of GlobalData’s Video Streaming report suggests that platforms are now increasingly focusing on profitability having operated at losses for years to grow subscriber numbers.
Indeed, global subscribers to subscription-video-on-demand (SVoD) platforms hit 1.6 billion in 2024, overtaking pay-TV subscribers (at 1.5 billion) for the first time, the report states.
“The continuing cord-cutting trend, which refers to people cancelling their cable TV subscriptions, is the main reason behind this,” it says. “GlobalData figures show that the number of cable TV subscribers in North America fell by 33% between 2020 and 2024.”
While GlobalData expects pay-TV subscriber numbers to continue rising in the coming years, it forecasts a low compound annual growth rate (CAGR) of 1.7% between 2024 and 2030, bringing total global subscribers to 1.6 billion by the end of that period. Conversely, SVoD subscriber volume is expected to hit 2 billion by 2030 with a CAGR of 4.1% across the same timeframe.
A more marked divergence can be seen in the global market values of each, with the SVoD market expected to grow at a compound annual rate of 4.6% between 2024 and 2030, from $135bn to $177bn. In contrast, the pay-TV market is forecast to shrink at a CAGR of -1.6% across the same period, falling in value from $198bn to $179bn.
Streaming platform priorities
Having entrenched themselves as the dominant means of TV distribution, with the market increasingly saturated and content costs rising, GlobalData’s report provides examples of the shifting foci for streaming platforms.
“The likes of Disney+ and Netflix have increased subscription prices to boost revenue,” it outlines. “In the US, between 2023 and 2024, Netflix increased the cost of its premium plan by 15% to $23 per month, while Disney+’s monthly ad-free subscription price rose by 14% to $16.
“The push for profitability is also impacting content spending. In the past, streamers invested heavily in content to get ahead of the competition. However, in the last few years, streamers have begun to tighten their belts amid concerns that they were not getting sufficient returns for their content investment. Despite this, according to GlobalData estimates, Netflix, Disney, Amazon, Apple and Baidu (iQiyi) spent a combined $70bn on content in 2024, an increase from 2023’s $68bn but a decrease from 2022’s $73bn.”
The report also notes that some subscription-based streaming platforms are shifting towards hybrid models that have seen them incorporate advertising, despite paid platforms historically not showing ads, and/or free ad-supported TV (FAST) channels to attract cost-conscious subscribers while increasing ad revenues.
“Due to such moves, Disney and Paramount Global’s streaming businesses achieved profitability for the first time in 2024,” it adds.