What are the main categories of OTT streaming services?
OTT streaming divides into three primary categories based on monetization model:
- Subscription video-on-demand (SVOD) includes paid streaming services like Netflix, Disney+, and HBO Max. Most now offer ad-supported tiers alongside premium ad-free options.
- Free ad-supported streaming TV (FAST) provides content without subscription fees, monetized entirely through advertising. Pluto TV, The Roku Channel (aff), Tubi, and Amazon Freevee lead this category.
- Virtual multichannel video programming distributors (vMVPDs) deliver live and on-demand content through internet-based bundles. YouTube TV leads with 21.5 million US viewers, followed by Hulu + Live TV and Sling TV, according to EMARKETER data.
An increasing number of platforms combine these models, offering ad-supported SVOD tiers.
Why is linear TV ad spend declining?
Linear TV faces structural headwinds as audiences shift to streaming and advertisers follow:
- Cord-cutting acceleration. Consumers continue swapping traditional cable bundles for streaming services and vMVPDs.
- Targeting limitations. Linear TV lacks the audience segmentation and real-time optimization capabilities that digital channels provide.
- Measurement gaps. Advertisers increasingly demand metrics beyond traditional ratings, and linear TV struggles to deliver cross-platform attribution.
- Aging viewership. Linear TV skews older, with baby boomers spending over four hours daily with TV while Gen Z averages under one hour, according to a June 2025 EMARKETER forecast.
Live events like the Olympics, World Cup, and US elections still drive significant linear viewership and ad spending bumps. But outside these tentpole moments, the long-term trajectory points downward, per EMARKETER analysis.
How is streaming changing TV subscription revenues?
Streaming services are capturing an increasing share of total video subscription fees. By 2026, live TV (including vMVPDs) will account for just half of US…