July 28, 2026 New York, USA

The streaming video revolution remains in full flower, with the sector poised for robust expansion over the coming years, according to definitive projections from PwC. The U.S. total over-the-top (OTT) market is forecasted to surge by 33%, reaching a staggering $112.7 billion by 2029, driven by a compound annual growth rate of 5.9%.

Unprecedented Market Dominance

The United States continues to solidify its position as the paramount and most influential streaming video market globally. Generating $61.9 billion in transactional and subscription VOD revenue recently, the U.S. market utterly dwarfs its nearest competitor, China, which trails at less than one-fifth of this monumental figure.

Despite achieving a state of market maturity, the U.S. continues to deliver buoyant double-digit revenue growth. Subscription VOD revenue has climbed significantly, bolstered by a 9.5% increase in OTT video subscriptions and an 8% rise in revenue per subscription.

The Strategic Pivot to Profitability

Moving forward, direct-to-consumer platforms are resolute in their focus on enhancing profitability. This strategic paradigm shift will be executed through a multifaceted approach: elevating average revenue per user (ARPU) via subscription price increases for ad-free tiers, implementing wholesale arrangements, enforcing password-sharing restrictions, and accelerating the adoption of ad-supported video on demand (AVOD).

Concurrently, the free, ad-supported television (FAST) subcategory is projected to outpace overall OTT growth, expanding at a 13.8% CAGR to reach $9 billion by 2029. Industry leaders such as Paramount’s Pluto TV, Fox Corp.’s Tubi, and the Roku Channel are at the vanguard of this lucrative transition. For comprehensive data and executive forecasts, readers are directed to the original reporting by Variety.

Alternative to Social Media Embed: While financial analysts and media outlets frequently disseminate market updates via platforms like X (formerly Twitter), the most definitive and enduring primary source for this verified industry forecast remains the official Variety report. This provides authoritative, expert-vetted details without the ephemeral nature of social media content.