Streaming To Overtake Pay TV Subscription Revenue For the First Time in US This Year

Streaming revenue will overtake pay TV subscription revenue in the U.S. for the first time later in 2024, helped by the addition of ad tiers by various streamers, according to a new forecast. From a report: Total revenues from streaming, including subscription and advertising revenue, will start topping revenue from pay TV subscriptions in the third quarter of 2024, research company Ampere Analysis projects in a new study unveiled on Monday. "Streaming will continue to race ahead as traditional pay TV declines -- with the value of pay TV in 2028 expected to fall to half the value it saw at its peak in 2017," it predicts.Streaming subscribers overtook pay TV subs in the U.S. in 2016, but "streaming's lower average revenue per user (ARPU), which currently sits at around a tenth that of pay TV, means that revenue is only now catching up," Ampere explained. U.S. pay TV revenue will still be narrowly ahead of streaming revenue in the second quarter at $17.1 billion to $17 billion, followed by a $17.3 billion to $16.7 billion streaming lead in the third quarter, according to the research firm's projections.

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