For the first time ever, global streaming video revenue is expected to leave behind pay-TV revenue. In 2025, the streaming business is set to generate $213 billion, compared to pay TV’s $188 billion.

To drive this growth, major subscription-based streaming services have introduced ad-supported tiers, marking a shift toward offering more free content. This trend is expected to continue, with streaming platforms adopting TV-like distribution, pricing, and programming strategies.

Tony Gunnarsson, an analyst at Omdia, says the five big U.S. streaming platforms including Netflix, Disney+, Paramount+, Amazon Prime Video, and Max-are starting to resemble traditional pay TV. With the addition of ad-supported tiers, sports content, and bundled options, these services are shifting to a more TV-like model.

Omdia’s latest report, 2025 Trends to Watch, suggests that the battle between streaming services is over, with advertising now taking a key role. Subscription bundles, replacing the traditional single-service model, will likely dominate the future of streaming.

While streaming trends are changing worldwide, India’s situation will be different. Tony Gunnarsson from Omdia predicts that pay-TV will remain the top source of revenue in India well into the late 2020s, and it could even grow in the coming years.

The report shows that streaming is becoming more like traditional TV, with more ads. By 2025, the big five streaming services are expected to have 818 million paid subscriptions worldwide and around 250 million of those (30%) will be on ad-supported plans.

In the U.S., 24% of streaming revenue came from ads last year, and now most entry-level subscriptions come with ads. The report suggests that people are becoming more tolerant of ads as this trend continues.

As streaming services expand into new markets, it's becoming clear that the big global platforms won’t launch directly to consumers. Instead, they are more likely to partner with local providers, whether pay-TV operators or other streamers. For example, HBO Max has yet to launch in India, and its approach will likely follow the trend of partnering with local services, especially given India’s reliance on ad-supported models.

Tony Gunnarsson points out that the industry has lost focus on customer needs, especially in the West, where direct-to-consumer models haven’t been as successful. He believes bundling and packaging services for customers work better. Until streaming services offer a more TV-like experience, the competition will remain tough for everyone.