The streaming services industry over the past 48 hours has seen notable expansion, intensifying competition, and pronounced shifts in consumer behavior shaped by both market forces and economic pressures.
Most significantly, the number of free ad-supported streaming television channels, known as FAST channels, has increased by 21 percent globally in 2025. This rapid growth demonstrates viewers increasingly turning to ad-supported platforms as subscription fatigue rises. FAST channels are focusing more on TV shows, sports, and news, with these two genres now making up 21 percent of all such channels tracked. However, this boom has greatly intensified content fragmentation, leading to confusion among users. Gracenote reports that nearly 50 percent of global streamers say the experience of finding something to watch is overwhelming, and a third believe fragmentation has worsened the value of streaming. Notably, the average time spent searching for content in the US has risen to 12 minutes, up from 10.5 minutes last year.
Major industry players are aggressively responding. Netflix highlighted a surge in adoption of its lower-cost ad-supported plan and has expanded its advertising technology, now testing dynamic ad insertion for live events in six countries. This technology enables the company to better target ads by demographic metrics, such as education and household income, and to offer new options for brand partnerships. Netflix’s foray into dynamic ad insertion, tested recently with wrestling and NFL content, signals further industry innovation focused on monetizing live streaming.
Meanwhile, Paramount has struck a landmark five-year deal to become the exclusive home for UFC and other sports in the US and beyond starting in 2026, securing a stream of premium content amid fierce competition for live event rights.
Economic pressure on consumers is driving new behaviors. New data show that one in three American streamers has cut other household spending to keep streaming subscriptions. Sixty-three percent now say they cannot afford all the services they want, and ad-supported tiers are increasingly popular; 42 percent of subscribers have downgraded to ad-supported versions, while 39 percent have upgraded to avoid ads. Streaming companies are therefore emphasizing flexible tiered pricing to retain customers in a crowded, inflationary market.
In summary, the streaming sector is experiencing rapid expansion, mounting competition, and greater reliance on ad-based models, with leaders like Netflix and Paramount adapting quickly to both consumer demand and economic realities.
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This content was created in partnership and with the help of Artificial Intelligence AI
