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The Future. A mix of subscriber growth and ad revenue will help streaming make more money than pay-TV in the US for the first time ever later this year. While pay-TV will continue to decline in both users and revenue, more deals like Charter and Disney’s could stem the bleeding and ensure that the cord is never fully cut.
Stream dream
While streaming has had more TV viewership than pay-TV since 2016, it’s lagged behind in making money because a streaming customer is worth 10x less than a pay-TV one.
But that’s finally changing, according to a new report from Ampere Analysis.
- New ad tiers from Netflix, Disney+, and Prime Video have fueled subscriber growth and increased the average revenue per user (ARPU), which is why the services are pushing customers to them.
- Password-sharing crackdowns have also been very successful in onboarding new customers, especially onto… you guessed it… the ad tiers.
Those factors will help streaming revenue reach a projected $17.3 billion in Q3, ahead of pay-TV’s $16.7 billion. Those rankings are never expected to flip again.
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