U.S. Streaming Video Market to Surge 33% by 2029 to Over $112 Billion, PwC Forecasts

Published in Media and Entertainment on Thursday, July 24th 2025 at 3:02 GMT by Variety
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U.S. streaming video is to grow revenue 33% over the next five years to over $112 billion in 2029, according to the latest projections from PwC.

U.S. Streaming Video Market Poised for Explosive Growth, Forecast to Reach $112 Billion by 2029

In a landscape where digital entertainment has become the cornerstone of modern media consumption, the U.S. streaming video market is on track for remarkable expansion. According to a comprehensive new forecast from PwC's Global Entertainment & Media Outlook 2025-2029, revenues from streaming services in the United States are projected to surge to $112 billion by 2029. This represents a significant leap from the $81.6 billion expected in 2024, underscoring the sector's resilience and adaptability amid evolving consumer behaviors and technological advancements.

The report paints a picture of a dynamic industry that has weathered recent challenges, including economic uncertainties and shifting viewer preferences. Streaming video, encompassing both subscription-based and ad-supported models, is anticipated to grow at a compound annual growth rate (CAGR) of 6.5% over the next five years. This growth trajectory highlights the increasing dominance of over-the-top (OTT) platforms, which have revolutionized how audiences access content, from blockbuster movies and original series to live sports and user-generated videos.

Breaking down the forecast, the subscription video-on-demand (SVOD) segment, led by giants like Netflix, Disney+, and Hulu, is expected to account for the lion's share of this revenue. PwC predicts SVOD revenues will climb to $68 billion by 2029, up from $52.7 billion in 2024, reflecting a CAGR of 5.2%. This growth is driven by a combination of factors, including the expansion of content libraries, international co-productions, and innovative pricing strategies such as tiered subscriptions that incorporate advertising to appeal to cost-conscious consumers.

On the other hand, the advertising video-on-demand (AVOD) and free ad-supported streaming television (FAST) categories are set for even more robust expansion. These segments, which include platforms like YouTube, Pluto TV, and Tubi, are forecasted to generate $44 billion by 2029, a substantial increase from $28.9 billion in 2024, with a CAGR of 8.7%. The appeal of AVOD lies in its accessibility—offering free or low-cost content supported by targeted ads—which has proven particularly attractive in an era of subscription fatigue. As advertisers seek more precise ways to reach audiences, the integration of data analytics and programmatic advertising is expected to fuel this segment's ascent.

This optimistic outlook comes at a time when the broader entertainment and media (E&M) industry is experiencing a renaissance. Globally, PwC estimates that total E&M revenues will reach $2.8 trillion by 2029, growing at a CAGR of 3.9% from $2.2 trillion in 2024. Within this, the U.S. market remains a powerhouse, with streaming video emerging as a key driver. The report emphasizes how digital transformation is reshaping traditional boundaries, blurring lines between video, gaming, music, and social media.

One of the most intriguing aspects of the forecast is the role of emerging technologies in propelling growth. Artificial intelligence (AI) is highlighted as a game-changer, enabling personalized content recommendations, automated production tools, and enhanced viewer engagement. For instance, AI-driven algorithms can analyze viewing habits to curate tailored playlists, keeping subscribers hooked and reducing churn rates. Additionally, the rise of virtual reality (VR) and augmented reality (AR) is anticipated to create immersive streaming experiences, potentially opening new revenue streams through premium, interactive content.

The forecast also delves into the competitive landscape, noting how consolidation and partnerships are becoming essential strategies. Recent mergers, such as those involving major studios and tech companies, are aimed at building comprehensive ecosystems that combine content creation, distribution, and monetization. For example, the bundling of services—like offering Disney+, Hulu, and ESPN+ together—has helped platforms retain users and maximize average revenue per user (ARPU). PwC analysts point out that while the market is maturing, there's still room for innovation, particularly in underserved niches like niche genres, regional content, and live events.

Consumer trends are another focal point of the report. With households increasingly cutting the cord on traditional cable TV, streaming has filled the void, but not without hurdles. Issues like content fragmentation—where viewers juggle multiple subscriptions to access desired shows—have led to a push for more unified platforms. The report suggests that by 2029, we could see greater interoperability between services, perhaps through universal search functions or shared libraries, making the ecosystem more user-friendly.

Advertising's evolution is equally critical. As AVOD gains traction, the industry is moving away from interruptive ads toward more seamless integrations, such as shoppable content and branded entertainment. This shift is supported by advancements in addressable advertising, where ads are tailored based on real-time data, improving effectiveness and ROI for marketers. PwC forecasts that global internet advertising revenues will hit $1 trillion by 2029, with video playing a pivotal role, especially in the U.S., where digital ad spend is expected to grow at a CAGR of 6.1%.

Looking beyond video, the report provides context within the wider E&M spectrum. Video games and esports are projected to be the fastest-growing segment globally, with revenues reaching $321 billion by 2029 at a CAGR of 7.6%. This intersects with streaming, as platforms like Twitch and YouTube Gaming blend live broadcasts with interactive elements, attracting younger demographics. Music and podcasts are also on an upswing, with revenues forecasted at $76 billion by 2029, driven by streaming services like Spotify and Apple Music.

Challenges, however, are not overlooked. Regulatory pressures, such as antitrust scrutiny on tech giants and data privacy laws, could impact growth. Content piracy remains a persistent threat, eroding potential revenues. Moreover, economic factors like inflation and recession risks might temper consumer spending on discretionary entertainment. Despite these, PwC remains bullish, citing the sector's adaptability. For instance, during the COVID-19 pandemic, streaming saw unprecedented surges, proving its recession-resistant qualities.

In terms of regional comparisons, the U.S. leads the pack, but emerging markets in Asia-Pacific and Latin America are catching up. China, for example, is expected to see its E&M revenues grow at a CAGR of 5.3%, fueled by mobile streaming and short-form video apps like Douyin (TikTok's Chinese counterpart). This global perspective underscores the interconnectedness of the industry, where U.S. trends often set the tone worldwide.

Industry experts echoed the report's sentiments, emphasizing the need for strategic investments. "The future of entertainment lies in creating value through innovation and consumer-centric approaches," noted a PwC representative in the outlook. "Streaming isn't just about delivering content; it's about building communities and experiences that resonate."

As we approach 2029, the U.S. streaming video market's journey to $112 billion will likely be marked by both triumphs and trials. From the proliferation of high-speed internet enabling 4K and 8K streaming to the integration of social features that turn passive viewing into interactive events, the possibilities are vast. For consumers, this means more choices, better quality, and potentially lower costs through competitive pricing. For creators and companies, it signals opportunities to capitalize on data-driven insights and cross-platform synergies.

Ultimately, this forecast from PwC serves as a roadmap for the entertainment industry's digital evolution. It highlights streaming's pivotal role in a world where content is king, but delivery and engagement are the true crowns. As the market expands, it will not only reflect changing tastes but also shape the cultural narrative, making every binge-watch session a part of a larger, billion-dollar story. With such projections, the streaming wars are far from over—they're just heating up.

Read the Full Variety Article at:
[ https://variety.com/2025/tv/news/us-streaming-video-market-size-forecast-2029-112-billion-pwc-1236467025/ ]

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