The Internet TV market in the United States is growing; Here’s how to take advantage of it
The US Internet TV market is a thriving scene and is expected to grow 60% over the next five years. In return, proceeds from OTT TV episodes and movies will reach $94 billion in 2026—Almost double the $49 billion that was made in 2020. Media companies are currently in the midst of an incredibly competitive and fragmented market.
There is a risk that media companies will be left behind if they are not quick enough to respond to the changing landscape. However, this is also one of the most exciting periods for the industry, and its potential is not showing any signs of slowing down, making this a great time to explore new ways to grow and expand horizons in the field.
Owned and Managed (O&O) services alone are no longer enough for media companies to thrive in today’s broadcasting environment. To achieve growth, media companies must ensure that they incorporate an effective business strategy that puts diversification at its core. If implemented correctly, these strategies will unleash greater audience reach and monetization that will enable them to thrive now and in the future.
In this article, I will explain how to implement a hybrid approach and the main areas to consider for media companies looking to get a part of the growing Internet TV market.
Free, linear, ad-supported (FAST) services have grown in popularity in recent years. We’re now seeing FAST built into TV interfaces, and it’s being made widely available on Connected TV (CTV) app stores.
FAST Linear Channels are a vital hub for distribution diversification and monetization. They retain the simple advantages of traditional linear television, while providing valuable new digital advertising opportunities. Through FAST, content providers can unlock the potential to program channels in an algorithmic fashion, using artificial intelligence to suit viewers’ tastes and leveraging automated ad platforms to maximize the value of ad spots. Channels can also be launched quickly and content finely tuned in real time to improve viewership. When customer demand fluctuates, FAST channels can be expanded up and down. This is a crucial benefit to help keep content providers in check.
Additionally, SVOD services should consider offering different payment options—perhaps lower fees for some form of advertising—to help cater to audiences across a range of needs. This is a hot topic in the industry, of course, enabling companies to generate new advertising revenue that was not previously part of the business model. Lowering the price helps cost-conscious customers have more choice, and is likely to attract more subscribers in the long run.
To support this, ad-based video on demand (AVOD) is also an attractive medium. Like FAST, AVOD has also enjoyed significant growth. AVOD viewers in the United States are It is expected to reach 165 million in 2025 (Opens in a new tab) And the format can be a great distribution tool for a media company’s content library. AVOD enables significant advertising revenue, helps companies become more competitive in the market, drives up and running services. AVOD helps fill the gap between an ad-free experience offered by subscription services and line TV giving it the best of both worlds.
AVOD is now a dominant player in the Internet TV market and brands are pouring money into these services for their user focus: fewer ads for a higher value for commercial awareness among viewers. AVOD’s ability to track user interactions can help make ads more trackable and easier to determine their success. These advanced targeting capabilities are exactly what the market is looking for today – both the advertiser and the consumer.
If implemented successfully, and ensuring that media companies focus on content and their technology stack, AVOD will surely allow content to thrive in the age of streaming.
Ensure the correct set of tools
To help build and nurture thriving content communities in our industry, broadcast providers must ensure that they provide the flexibility to support multiple business models that reflect our market and its ever-changing landscape. The solutions should boast capabilities that include high-quality OTT application deployment and a dynamic video-on-demand playlist. You should also consider including support for AVOD and SVOD, two services that are rapidly changing how video is consumed and monetized. However, SVOD requires one workflow, AVOD requires another, FAST channels require other, and many potential engagement partners require more.
It is important to understand that, to stay ahead of the curve, media companies need the right cross-platform technology to support hybrid business models and multi-partner distribution to implement a successful distribution and monetization strategy.
With this in mind, broadcast providers must ensure that they put together a broad technical suite of solutions to reach full audience engagement and monetization potential. But at the same time, they need an efficient way of working that avoids the complexities of having to deal with multiple vendors at once, which makes workflow management more difficult.
But, if they achieve it, there is a great opportunity to reach new audiences, increase revenue streams, and pave a path to long-term success.