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, 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 video subscription revenues, down from more than three-fourths in 2020, according to EMARKETER.
This shift has strategic implications:
-
Subscription trends predict ad audiences. Where subscription dollars flow indicates where ad-supported viewership will follow.
-
Bundling partnerships evolve. Subscription dynamics determine which services partner, which thrive, and what programming gets funded.
-
Advertiser planning must adapt. Marketers should prepare streaming-first video strategies, as subscriptions shape where audiences gather.
The transition suggests advertisers should treat streaming as primary inventory rather than a linear TV supplement.
Who are the biggest players in the converged TV market?
The converged TV landscape includes traditional broadcasters, streaming platforms, and device manufacturers:
Streaming leaders by viewership: Netflix, Amazon Prime Video, and Hulu rank as the most popular subscription services. YouTube dominates time spent, with US consumers averaging 39 minutes daily on the platform in 2025, according to a June 2025 EMARKETER forecast.
CTV ad revenue leaders: Amazon, Disney (Hulu + Disney+), Google (YouTube), and Roku each generate over $3 billion in annual US CTV ad revenues. Netflix's ad tier, launched in late 2022, continues scaling.
FAST platforms: The Roku Channel, Tubi, and Pluto TV each exceed 50 million viewers, attracting cost-conscious consumers seeking free content.
Device makers: Roku, Amazon Fire TV, and smart TV manufacturers like LG and Samsung control significant CTV access points and advertising inventory.
What measurement challenges exist across converged TV?
Converged TV measurement remains fragmented, creating obstacles for cross-platform campaign optimization:
-
Multiple currencies. Streamers use different measurement approaches, and EMARKETER analysts do not expect the industry to coalesce around a single currency as linear TV did for decades.
-
Walled gardens. Each streaming platform operates within its own data environment, limiting visibility into deduplicated reach across networks.
-
Attribution complexity. Connecting ad exposure on a TV screen to purchase behavior requires integration with retail data or identity solutions.
-
Inconsistent methodologies. Attribution windows, viewability definitions, and reporting standards vary across platforms.
Industry bodies like the IAB are working on standardization, but measurement fragmentation will persist through 2026.
How should marketers approach converged TV planning in 2026?
Effective converged TV strategy requires balancing linear and streaming based on campaign objectives:
-
Adopt streaming-first planning. With streaming capturing the majority of subscription revenues, treat CTV as primary video inventory rather than a linear extension.
-
Match channels to goals. Linear TV still delivers mass reach for tentpole events and older demographics. CTV provides targeting precision and interactive capabilities.
-
Plan for fragmentation. Budget for multiple platforms and accept that single-source measurement remains elusive. Use holdout testing where available.
-
Integrate retail media data. Partnerships between streamers and retailers enable closed-loop measurement connecting ad exposure to purchase.
-
Test interactive formats. Shoppable ads and pause ads on CTV drive engagement and bottom-funnel outcomes that standard video cannot match.
Start with clear objectives, then select channels based on audience alignment and measurement capabilities.
We prepared this article with the assistance of generative AI tools and stand behind its accuracy, quality, and originality.
EMARKETER forecast data was current at publication and may have changed. EMARKETER clients have access to up-to-date forecast data. To explore EMARKETER solutions, click here.