Omdia* 7.17.25 | Hybrid SVOD/AVOD to Surpass AVOD/FAST Advertising In the US

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July 17, 2025 | Omdia’s latest analysis of major US streaming services indicates that the aggregated total advertising revenue from hybrid subscription/ad-supported video-on-demand (SVOD/AVOD) services is set to overtake the combined non-subscription AVOD/free ad-supported TV (FAST)/broadcaster video-on-demand (BVOD) market in 2025. Furthermore, ad-tier subscription revenue is growing at a much faster pace than premium ad-free subscription revenue. Accordingly, the aggregated total of premium online video advertising revenue generated by hybrid SVOD/AVOD services in the US – including Amazon Prime Video, Discovery+, Disney+, Hulu, Max, Netflix, Paramount+, and ViX – is forecast to reach $14.2bn by year-end 2025. This compares with a forecast total of $13.1bn in full-year 2025 for all subscription-free premium online video advertising services, counting both AVOD and FAST services, in addition to BVOD services.

2025 is set to be a major milestone year in the shift of streaming toward advertising. Hybrid SVOD/AVOD is far from a new feature in the US: the model was in many ways pioneered by Hulu, which launched in 2008 with an ad-supported subscription tier. However, the sector only kicked off in earnest as other major streaming services adopted the model in response to increased competition for direct-to-consumer (D2C) streaming. Hybrid SVOD/AVOD is changing not only the US premium online video advertising market but also the US online video subscription market. Omdia’s latest analysis shows that revenue from the subscription element of ad-tier packages is already a critical driver for SVOD overall. Rapid growth rates for hybrid SVOD/AVOD in the period to 2030 are a testament to successfully evolving company strategies in developing the SVOD business toward hybrid ad-funded models.

Find more insights from Omdia here.