The OTT industry of 2025 is in a very different place than it was just a few years ago. While video streaming remains central to how audiences consume content, the sector is navigating a tougher environment. Rising inflation and economic uncertainty have reshaped household entertainment budgets, pushing U.S. streaming spend down 23% from $55.04 per month in 2023 to $42.38 in 2024.
For OTT platforms, the headwinds are clear: standing still isn’t an option. Understanding the key OTT trends shaping viewing habits, monetization models, and advertising opportunities is critical for operators who want to keep audiences engaged and stay attractive to brands.
What needs to be considered on your roadmap now to remain a pacesetter as competition heats up?
1. Streaming is a Social Activity
The generation of digital denizens, as they call Gen Z now, is dictating how streaming operates nowadays, and blends watching with connecting with peers and loved ones. Here’s what The Stream 2025: Audience Insights Shaping Streaming by Harris Poll found out.
For many young viewers, streaming is a place to discover, to find their people, and to explore parts of themselves through the stories on screen. Sometimes that means going online to social media during a live show to check out reactions, memes, and running commentary (31%). Other times, it’s gathering in person, like heading over to a friend’s place for a movie night (42%). And for those apart, there’s always the group texting with swapping takes with friends and family watching somewhere else (22%).
2. TV is No Longer What It Was
Another report, 25 Streaming Trends That Are Impacting Marketing Plans in 2025 by VAB, illustrates an interesting shift in streaming industry trends.
For older audiences, streaming sits alongside traditional television as an add-on to cable. For many younger adults, it’s the opposite: streaming has become the primary way they watch, with traditional TV playing little or no role.
Most adults under 50 now see streaming as a full replacement for traditional TV. In fact, younger viewers think differently about what counts as “TV”. For them, it’s anything that goes on a TV screen—streaming platforms, social video, and connected apps. This broader definition reflects how viewing habits have shifted.
3. Choice Paralysis
Streaming’s biggest perk used to be unlimited choice. Now, for many viewers, that’s the problem.
63% of viewers (and 71% of Gen Z!) say they feel worn out by the sheer number of options when they sit down to watch something. That’s up from 54% just a year ago (2024). For Gen Z, especially, the end of a long day isn’t the time for a scavenger hunt. 69% admit that if they don’t already have something in mind, they’ll spend at least 10 minutes searching before they hit play.
When platforms deliver relevant recommendations, 74% of viewers say it makes choosing easier. For 70% of Gen Z, it also makes them feel seen, especially when it leads to a new fandom or niche show they love.
At the same time, 72% of Gen Z crave diversity and representation in TV and movies, and it’s not a coincidence: 48% of the 18–34 streaming audience is multicultural, with a strong interest in seeing that reality reflected on screen. Smart recommendations paired with inclusive content are what keep them coming back.
4. Need for Curation Stays
Most viewers prefer a balance of network-produced shows, movies, and streaming originals. 74% say streaming platforms make choosing easier when they suggest TV shows or movies they’ll actually enjoy. 71% take it a step further, adding titles to “My Stuff” or “My List” to save for later, making the next watch easier to find.
But there’s still room to improve. 80% of viewers believe streaming services could do more to truly “get” them and surface content that matches their tastes. For platforms, that’s an open invitation to fine-tune recommendations and keep audiences engaged.
5. AI and Machine Learning as Growth Drivers
At recent industry events, one theme has been impossible to miss. AI adds tangible value to operations, audience experience, and revenue. The conversation has moved from “if” to “how” AI fits into every stage of the content pipeline.
Tiered Adoption of Generative AI
The most effective operators are moving away from an all-or-nothing AI approach. Instead, they’re layering adoption:
- Automating high-volume, repetitive tasks like metadata tagging, file versioning, or quality control checks.
- Using AI for targeted enhancements such as color correction, VFX adjustments, or subtle audio refinements, where the goal is to improve the viewing experience without replacing creative decision-making.
Agentic AI for Adaptable Workflows
Unlike fixed automation, these systems can adapt in real time to changes in content, audience behavior, or delivery requirements without needing constant human input.
In an OTT context, this could mean:
- Real-time subtitle or dubbing changes to fit regional or cultural preferences.
- Automated scene-level tagging for faster content discovery in archives.
- Adaptive content delivery optimization so streams are configured for each device, bandwidth profile, or geographic market.
Real-Time Monetization Opportunities
Live content remains one of the most valuable OTT assets—and also one of the hardest to monetize globally. AI-powered live dubbing and instant localization are opening the door to same-day distribution across multiple language markets.
For smaller and mid-sized OTT operators, these tools reduce the technical and operational barriers to competing for global audiences, while for larger operators, they offer new ways to maximize the revenue window on premium content.
Real-Time Monetization Opportunities
Live content remains one of the most valuable OTT assets—and also one of the hardest to monetize globally. AI-powered live dubbing and instant localization are opening the door to same-day distribution across multiple language markets.
For smaller and mid-sized OTT operators, these tools reduce the technical and operational barriers to competing for global audiences, while for larger operators, they offer new ways to maximize the revenue window on premium content.
6. Device Ecosystem Maturity and Smart TV Takeover
OTT viewing has moved firmly into a device-agnostic world, where audiences expect the same experience no matter what screen they use. There are a few main shifts that have happened in the last five years:
- Native smart TV apps have become the main entry point for streaming. For many households, the TV interface, not a set-top box, is now the default content hub. You’re losing if your offering is not present across major platforms. Nora GO helps with launching branded apps across Smart TVs, mobile, and web from a single management console, consistent with your branding.
- Streaming-only homes are the norm. A majority of smart TV owners no longer maintain traditional pay-TV subscriptions, relying entirely on streaming for their viewing.
- Audiences expect seamless multiscreen transitions between TVs, mobile devices, and tablets. Discovery still takes time, though—viewers spend 6+ minutes on average searching for something new to watch, highlighting the importance of streamlined navigation and personalized recommendations.
7. AVOD on the Rise: Ads Aren’t the Enemy Anymore
VAB finds that nine out of ten U.S. adults now watch ad-supported content, creating a larger addressable market for OTT advertising. Price sensitivity is driving the shift. Over the year 2024, more viewers dropped paid subscriptions than free streaming services.
81% of viewers see ads as a fair exchange for free content (up 5% year over year). Expectations are clear:
- 79% of consumers say that if they pay for a streaming service, they expect it to be ad-free.
- 63% would rather watch ads and save money than pay full price for ad-free viewing.
Relevant ads can drive action. 59% of viewers say they’d consider acting after seeing something interesting, but many miss the mark. Among Gen Z, 73% say streaming ads feel misaligned with their preferences, and 46% say ads significantly disrupt their experience.
For OTT operators, the opportunity is to transform “ad tolerance” into true ad engagement. That means pairing AVOD monetization with smarter targeting. You can achieve this with OTT middleware like Nora, with the native support for flexible monetization models and personalized ad insertion at the Setrix transcoder layer.
8. FAST Viewership Becomes Habitual
If AVOD is the broad gateway to free streaming, FAST (Free Ad-Supported TV) is where many viewers stick around. Engagement is no longer occasional, since FAST channels are becoming part of viewers’ daily routines.
Ad loads are steady. Most FAST services hold commercial time at around nine minutes per hour, a level that supports monetization without pushing audiences away. This balance shows that, much like AVOD, viewers will tolerate ads if the experience is consistent and non-intrusive.
Live sports are a major driver. As more leagues expand digital rights, including major sports properties like the NFL, FAST platforms are seeing spikes in real-time engagement. For example, Amazon Prime Video’s Black Friday game (Raiders vs. Chiefs) on Nov. 29, 2024, drew 13.5 million viewers, +41% year-over-year vs. 2023. Sports bring appointment viewing to an on-demand ecosystem.
For OTT operators, FAST offers the reach of broadcast with the targeting and measurement capabilities of digital, making it an increasingly valuable piece of the ad-supported strategy.
9. Churn is Now Cost-Driven
Economic pressures are reshaping how people subscribe (and unsubscribe) to streaming services. The biggest driver is cost, which leads to never-before-seen tendencies in subscriber behavior.
Take subscription cycling, which means signing up for a specific show, then canceling once it’s over. It is now common across all age groups. Since 2024, 76% of Millennials, 67% of Gen Z, 66% of Gen X, and 45% of Baby Boomers have been planning to cycle subscriptions.
Over the past year, 52% of viewers canceled at least one paid streaming subscription due to economic concerns—a 14% jump year over year. As budgets tighten, many are replacing paid SVOD plans with free, ad-supported alternatives like AVOD or FAST.
For OTT operators, the challenge is clear: delivering enough ongoing value to keep audiences from cycling out, while having strong free or ad-supported offerings in place to capture those who do.
Trends in Video Streaming: Closing Thoughts
Audiences are more deliberate in how they spend their time (and money), which means platforms must earn every viewing hour. Whether it’s premium acquired libraries, buzzy originals, or live sports, audiences gravitate toward platforms that consistently deliver high-value content. Operators that can deliver relevant, well-timed ads on top of that will have the advantage.
At Setplex, our focus has always been on delivering video value. Our integrated video platform includes all the components required to:
- Manage a modern online video service
- Prepare live channels and on-demand libraries
- Deliver them securely and efficiently
- Present them to users through preconfigured apps
- Measure usage and performance
With Setplex, you can build a service that runs smoothly behind the scenes, while you focus on your content, audience, and growth. Book a demo to see how our complete solution can support your roadmap.
