Streaming Revenue Set to Surpass Pay TV in U.S. by Q3 2024

Ampere Analysis predicts streaming's total revenue, including ad-supported tiers, will overtake pay TV subscriptions for the first time.

Streaming's total revenue, including advertising, is expected to exceed pay TV subscription revenue in the U.S. by the third quarter of 2024, marking a significant shift in the entertainment industry.
The rise of ad-supported streaming offerings, such as Amazon Prime Video's new ad tier, is a key driver behind the projected revenue growth, with streaming ad revenue anticipated to surpass $9 billion in the U.S. this year.
Streaming subscribers overtook pay TV subscribers in the U.S. in 2016, but streaming's lower average revenue per user (ARPU) has delayed its revenue surpassing pay TV until now.
The decline of pay TV is projected to continue, with its value expected to fall to half its peak 2017 value by 2028, and U.S. pay TV households anticipated to halve from 2015 levels by 2029.
Collaborations between streaming and pay TV services, such as the deal between Disney and Charter, highlight potential pathways for pay TV's adaptation and survival in the streaming-dominated landscape.