- Flexible Global SVOD Pricing Strategies
- Evolving Content Strategies: Originals, Sports, and Ecosystems
- Global Trends: Local Services and Adapting to Advertising
- Discover What Global Streaming Platforms Pay to License Films and Shows
- Ad Tiers and Viewer Satisfaction: Driving Revenue and Engagement
- ARPU of Selected Global Streaming Services (2024)
- FilmTake Away: The Rules of the Game Change
Content licensing strategies and pricing formulas are shifting as platforms focus on retaining subscribers with live sports and bundled services. Sports rights, such as those for the Champions League and NFL, have driven substantial growth for Paramount+ and Peacock—Prime Video benefits from integrating most major streaming services into one platform.
Meanwhile, FAST platforms like Tubi and Pluto TV are gaining ground by offering free, ad-supported programming, appealing to viewers weary of rising subscription costs. Both trends highlight how platforms are adapting to monetize effectively while meeting diverse consumer expectations.
Flexible Global SVOD Pricing Strategies
Global SVOD giants continue to refine their strategy through selective adoption of ad-supported models. Netflix, for instance, only offers its ad-supported tier in 12 of its 190+ countries, focusing on markets where consumer demand for ad-free experiences is balanced by higher willingness to pay.
Disney+ has followed a similar model, launching ad-supported tiers in affluent regions like the U.S., Canada, and Western Europe, where subscribers are more accustomed to higher streaming costs.
In price-sensitive regions such as India, the SVOD model skews differently. Netflix has even reduced subscription prices in India, avoiding ad tiers altogether and aligning with local economic dynamics. However, in Latin America, AVOD revenue is projected to outpace SVOD over the next five years, and major U.S.-based platforms like Netflix, Disney+, and Max have laid plans to introduce ad-supported offerings in select markets.
By selectively leveraging AVOD models, these companies aim to optimize revenue in diverse regional markets, appealing to price-sensitive users while maximizing ad-based income streams.
Evolving Content Strategies: Originals, Sports, and Ecosystems
Original content remains crucial for attracting new subscribers, but it has shown limited success in keeping them long-term. Platforms like Disney+ and Apple TV+ have managed to draw in users with popular hit shows, but such successes are infrequent. Sustaining subscriber engagement over time now relies more on offering a wide variety of content that appeals to diverse viewer preferences.
Live sports, in particular, have emerged as a cornerstone for retention––not a big surprise as streaming supplants broadcasting’s last gasp at staying relevant in an ever-fragmented market. Platforms like Peacock, Prime Video, and Paramount+ have integrated sports coverage to great effect, with events like the Summer Olympics and exclusive rights to American football and its namesake abroad, including the Champions League, boosting subscriptions. Sports accounted for a significant portion of new subscriptions in 2023 and continued throughout 2024.
Brand ecosystems also play an essential role in enhancing subscriber loyalty. Apple TV+ has capitalized on its integration with the Apple ecosystem, seeing a 45% increase in channel add-on subscriptions within six months. Similarly, Prime Video benefits from its association with Amazon’s retail offerings, with a third of its subscribers ranking it as their most important service.
Global Trends: Local Services and Adapting to Advertising
Globally, streaming platforms are experiencing varied growth trajectories. In Europe, local services like Movistar+ (Spain) and Joyn Plus+ (Germany) saw significant growth in 2024. These platforms leverage tailored content strategies to capture market share, such as Movistar+’s sports coverage and Joyn Plus+’s reality TV offerings.
Free ad-supported TV (FAST) services, which only recently gained traction, are already active in over 35% of households globally, driven by the growing appeal of scheduled, background-friendly programming at no cost.
FAST channels like Tubi and Pluto TV have become serious contenders. Tubi’s viewership grew 43% year-over-year in 2023, matching Disney+ with a 1.8% share of U.S. TV time. Likewise, 88% of Roku households in the U.S. stream free, ad-supported content across dozens of channels. These FAST platforms appeal to viewers overwhelmed by “streamflation” and subscription fatigue by offering vast libraries of licensed content from multiple distributors at no cost.
FAST channels operate on a simple yet effective model: curated, ad-supported programming that feels familiar to those nostalgic for cable TV’s linear experience. For advertisers, these platforms provide an opportunity to reach audiences migrating away from traditional television. For consumers, they offer a no-strings-attached alternative to subscription-based services.
The value proposition of FAST platforms is clear: while Netflix and Disney+ charge for their ad-supported tiers, platforms like Tubi and Pluto TV are entirely free. This feature makes them particularly attractive to budget-conscious viewers, especially in a challenging economic climate.
Ad-supported models are increasingly prevalent worldwide, but they are not without challenges. For instance, Disney+ has begun exploring “always-on” programming to increase daily engagement, addressing the 1 in 3 cancellations attributed to infrequent use.
Discover What Global Streaming Platforms Pay to License Films and Shows
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Licensing Terms & Included Programs:
Access comprehensive SVOD Rate Cards for licensing motion pictures and series across multiple territories and availability windows. With data spanning the last decade, our reports provide invaluable intelligence on:
- Motion Pictures: Pay-1, First Run, Second Window Features, Recent Library Features (Tiers AAA,A,B,C), Library Features (Tiers AAA,A,B,C), Current and Premium Made-For-TV Films and Direct-To-Video Films, covering many license periods over the last decade
- Episodic TV: Current, Premium, Premium Catalog (1HR & 1/2HR), Catalog Series (1HR & 1/2HR), and Catalog Miniseries + Case Studies on Current Mega Hit, Catalog Mega Hit, and Premium Catalog, covering multiple licensing periods
Gain a competitive edge by understanding the real-world distribution rates and terms driving global licensing deals. By leveraging most-favored-nation rates, our data reflects a diverse range of content and distributors, ensuring relevance across multiple availability windows and content tiers.
Ad Tiers and Viewer Satisfaction: Driving Revenue and Engagement
The rise of ad-supported models underscores a significant shift in consumer attitudes. Nearly half of all VOD households now accept ads in exchange for lower subscription costs, up from 44% the previous year. This trend highlights the importance of balancing affordability with user experience, as the quality of ad interactions remains critical. Platforms that fail to manage ad frequency and relevance risk alienating subscribers, as shown by Prime Video’s recent struggles.
Netflix has demonstrated that ad tiers can boost revenues without sacrificing user satisfaction. Its customer satisfaction rating is currently the highest in 18 months, showing that strategic implementation of ads can maintain user engagement. Disney+ and other platforms are exploring similar approaches, aiming to attract cost-conscious subscribers while delivering premium content.
ARPU of Selected Global Streaming Services (2024)
Ad-supported tiers have also emerged as a major driver of streaming revenue, with U.S. streaming advertising revenue projected to exceed $9 billion this year. These tiers not only attract new subscribers in saturated markets but also provide a vital additional revenue stream. For instance, Amazon Video's introduction of its ad tier has already enhanced its financial performance, leveraging its position as the world's leading e-commerce platform.
In response to market demands, Netflix and Disney+ are raising prices for ad-free plans and cracking down on account sharing to boost revenues further. Both platforms are focused on expanding their ad-supported subscriber bases, a strategy already reflected in their growing ARPU figures.
FilmTake Away: The Rules of the Game Change
Platforms are no longer simply vying for new subscribers; they are competing to retain and maximize value from existing ones. From the growing importance of FAST and ad-supported tiers to the strategic use of sports and brand ecosystems, the future of streaming lies in diversification and innovation.