The US streaming video market is going to grow big time with projections of 33% growth to over $112 billion by 2029, according to PwC’s 2025 Global Entertainment & Media Outlook report. This growth is driven by a 5.9% compound annual growth rate (CAGR) from 2024’s $84.7 billion due to an increasing subscriber base, new service launches and price increases. The US is the global leader in streaming with $61.9 billion in transactional and subscription video-on-demand (VOD) revenue in 2024, way ahead of China’s $10.8 billion.
A big driver of this growth is the rapid rise of free, ad-supported television (FAST) services, which generated nearly $4.9 billion in 2024 and will reach $9 billion by 2029, growing at 13.8% CAGR. Leading platforms like Paramount’s Pluto TV, Fox Corp’s Tubi, the Roku Channel and Samsung TV Plus are cashing in on consumer demand for affordable alternatives as subscription fees rise. PwC says investments in content and technology will make FAST services even more appealing to cost-conscious viewers.
Pay TV is still declining, 41.1% of US households in 2024 vs 61.9% in 2020. By 2029, that will be 28.8%. This is the streaming era and platforms are going to make money through ad-supported tiers, bundling, password sharing restrictions and reducing marketing and tech costs. Live sports is a powerful subscriber acquisition tool. 2024 Super Bowl added 3.2 million to Paramount+ and 2024 Paris Olympics added 1.8 million to Peacock.
The film industry is adapting too. While secondary to streaming, US box office revenue dropped from $9.1 billion in 2023 to $8.9 billion in 2024 due to the 2023 WGA and SAG-AFTRA strikes. But PwC expects a rebound, with 110 films scheduled to open at over 2,000 North American locations in 2025 vs 95 in 2024. Studios are moving away from day-and-date streaming releases and going for theatrical exclusivity to maximize ancillary sales. Amazon MGM Studios and Apple are committing to 45-day theatrical windows for big titles.
As the US market gets more mature, companies are balancing subscriber growth with profitability, using advertising, exclusive content and live events to stay ahead in a crowded space. The global entertainment and media industry is projected to be $3.4 trillion by 2028. The US streaming market is a big part of that.
Source: Variety