The global streaming industry is undergoing a fundamental shift as platforms increasingly embrace ad-supported models and artificial-intelligence-powered advertising strategies. At the 2025 Global OTT Forum in Seoul, held by the Broadcasting, Media and Communications Commission (BMCC), more than 400 executives and scholars converged under the theme “The New Chapter of Streaming,” highlighting the major movement away from subscription-only models toward ad-based revenue streams. This indicates the industry is embracing this shift globally. Additional research supports this trend, with one 2025 survey noting that more than half of SVOD subscribers now pay for services that include ads. Moreover, other analyses forecast rapid growth in the ad-supported streaming market, driven by advertiser demand for larger, addressable audiences.
Sources: Deloitte, Korea BizWire
Key Takeaways
– Streaming platforms are accelerating their transition from pure subscription models toward ad-supported tiers, as evidenced by the Seoul forum and other industry reports.
– Advertisers are increasingly allocating budgets to streaming content, recognizing the reach and measurability of ad-supported models across OTT and connected TV services.
– Artificial intelligence is playing a growing role in ad-supported streaming, enabling smarter targeting, personalization, and embedding of ads directly within content — making it a key driver of monetization.
In-Depth
What’s underway in 2025 represents arguably one of the most consequential transformations in the media and entertainment economy in recent years. Streaming services that once relied heavily — if not exclusively — on monthly subscription fees are today pivoting hard toward ad-supported offerings. The catalyst for this shift is two-fold: first, rising consumer resistance to ever-increasing subscription costs; second, advertisers demanding more efficient ways to reach large audiences that are increasingly “cutting the cord.”
At the recent Global OTT Forum in Seoul, industry insiders made clear that the future of digital video lies not just in subscriptions but in ad-funded models. More than 400 attendees from global streaming firms, content creators, and ad networks came together to explore this “new chapter of streaming.” That event reflects how SVOD (subscription video on demand) platforms are no longer operating in a vacuum: they now view ad revenue as a structural pillar, not just a supplemental channel.
The data reinforce this shift. One major survey from 2025 shows that over 50 % of paid streaming subscriptions already include ad-supported tiers — and the number is rising. Alongside this, market analyses suggest that ad-supported streaming is moving from the periphery to the center of video monetization strategies. For example, some predictions indicate that ad-supported subscriptions will constitute the majority of gross additions for key platforms.
Advertisers are driving the change. For decades, television has been the dominant medium for brand spend, but the fragmentation of viewing and the rise of connected devices have eroded its supremacy. Streaming platforms offer rich data-driven targeting, measurable conversion, and greater precision. Ad-supported tiers give them access to larger subscriber pools who may not be willing to pay full price, while advertisers gain scale and addressability.
Artificial intelligence is another major pillar. Platforms are adopting AI-driven ad formats, personalized recommendation engines, programmatic buys, and even in-content ad insertions — pushing ad-supported streaming from simply “ads before and during content” to integrated, intelligent monetization structures. This shift makes the streaming ecosystem more dynamic but also raises new questions about viewer experience, ad load, and monetization strategy.
From a conservative viewpoint, the transition to ad-supported models could offer greater consumer choice and slower cost inflation. Instead of raising subscription prices relentlessly, platforms can offset content and infrastructure costs through advertising. This may help moderate the growth of premium prices and give budget-conscious viewers alternatives — likely a win for consumers weary of multiple $15–20 monthly bills. On the flip side, advertisers gain more entry points into households, making streaming ad dollars more critical than ever.
However, there are risks. Ad-supported models may introduce greater churn if viewers perceive the ad load as excessive. Increasing reliance on ad revenue might also expose platforms to economic downturns when ad budgets shrink. From a user experience standpoint, the challenge will be balancing monetization with minimal interruption — and ensuring that AI-driven ad insertions do not undermine brand safety or content integrity.
In sum, the streaming landscape in 2025 is no longer simply about bingeable content and subscriber counts; it is about unlocking scalable revenue models via advertising, optimizing ad formats through machine intelligence, and reconciling viewer demand for value with advertiser demand for reach. Platforms that navigate this shift effectively will redefine what streaming means and reshape the broader media ecosystem for years to come.