Streaming Giants Overtake Traditional TV in 2025 Ad Revenue, Report Reveals

A major industry report confirms streaming services have surpassed traditional television in US advertising revenue. This historic shift occurred in the first quarter of 2025. The change marks a permanent realignment in the media landscape.

This milestone was confirmed by data from the Reuters news agency. It reflects years of steady consumer movement towards digital platforms.

How Streaming Ad Revenue Topped Traditional TV in 2025

Streaming platforms captured over 51% of the total US TV ad market. This figure represents a significant jump from the previous year. The growth was driven by new ad-supported subscription tiers.

Major services like Netflix and Disney+ introduced lower-cost plans with advertisements. This strategy successfully attracted both viewers and marketing dollars. According to the Associated Press, these tiers were a key growth driver.

Traditional broadcast and cable networks saw a corresponding decline. Their combined share fell below 49% for the first time. This ends decades of broadcast dominance in advertising.

What This Shift Means for Viewers and Advertisers

Analysts say this change will accelerate the trend of exclusive streaming content. More high-budget shows and live sports are now expected to migrate online. This could further fragment where audiences need to subscribe to watch their favorite programs.

For advertisers, the new landscape offers more targeted marketing capabilities. Streaming services provide detailed data on viewer habits. This allows for ads that are more relevant to specific audiences.

The shift also pressures legacy media companies to adapt more quickly. Many are now prioritizing their own streaming bundles and partnerships. The goal is to regain a competitive edge in a crowded market.

This financial tipping point for streaming ad revenue confirms a new era for television. The way content is funded and consumed has been permanently transformed.

Thought you’d like to know

Which streaming service has the most ad revenue?

YouTube currently leads in total streaming ad revenue. Netflix and Hulu follow closely behind. Their new ad-supported plans have seen rapid user adoption.

How does this affect cable TV subscribers?

Cable packages may become more expensive as their subscriber base shrinks. Providers are likely to bundle streaming services to retain customers. The classic cable bundle is becoming a relic.

Will streaming now become more expensive?

Prices for ad-free streaming tiers are expected to continue rising. However, the lower-cost ad-supported options will likely remain. This creates a two-tier pricing system for most services.

What does this mean for live sports broadcasting?

Major sports leagues are already signing significant deals with streaming platforms. More live games will move exclusively to digital services. Traditional broadcasters are losing their grip on live sports.

Trusted Sources

Reuters, Associated Press, The Wall Street Journal, Bloomberg News