The State Of Streaming Services, US 2025

This coming Friday (December 12), Forrester publishes its latest report: The State Of Streaming Services, US 2025. It’s data-rich and packed with insights and trends on eight major US streaming services, focusing on consumer usage, ad tolerance, price sensitivity, and more. To build this report, we analyzed nine Forrester surveys representing over 100,000 online adults. The result? Eighteen charts and 240 data points that tell the story of a streaming market at a critical turning point. While the report covers a lot of ground, here’s a sneak peek at three standout findings.

Streaming Adopts The Traditional TV Model — Including Its High Costs

The streaming market, once a disruptor, is maturing into a business model that closely resembles legacy pay TV — except many consumers are paying more to watch. Since 2021, the average monthly cost for ad-free streaming services has jumped 54%, with Disney+ leading the price hikes. As yearly increases become the norm, consumers are forced to downgrade, “pause,” or bundle subscriptions to manage costs. The irony? Streaming’s promise of affordability has vanished while its evolution reaches the very model it once sought to replace.

Netflix’s Dominance Diminishes — As The Competition Ascends

While Netflix still leads in favorability and daily usage, its monthly usage has declined, with Amazon Prime Video closing in, especially among older generations. Additionally, Netflix admittedly faces intense competition — not just from other streaming platforms but from social media and gaming, with Gen Alpha’s weekly TikTok usage (67%) serving as a warning sign. The fight for attention now spans far beyond streaming, with short-form video platforms capturing more of viewers’ time.

Streaming Ad Tiers Are The New Normal — But Viewers Tune Out

Now, nearly every major streaming service offers an ad-supported tier, and most consumers (59%) tolerate watching ads to avoid paying higher prices — but they’re also avoiding the ads themselves. Only about a third of viewers pay attention during ad breaks; most use their phones or leave the room. As streaming services woo big brands during the upfronts, are advertisers getting what they pay for?

Forrester clients: You can download The State Of Streaming Services, US 2025, report starting Friday.