Streaming services, whether live or VoD, have become indispensable fixtures of modern daily routines. A recent report by Nielsen’s The Gauge has revealed that streaming usage has risen by a significant 71% since May 2021. This impressive figure also accounts for a viewing gain of 27% for Netflix alone, which, despite being a subscription service, has adapted its programming and distribution to stay relevant over the past four years. Nielsen reports that streaming usage represented 44.8% of total TV usage in May 2025, eclipsing the combined share of broadcast and cable for the first time, while free ad-supported and FAST services accounted for 5.7% of viewing. 

In light of these figures, this article examines what’s driving the 71% surge in streaming usage, how pricing and evolving business models are shaping platform popularity, and the role of advertising and ad-supported formats in current monetization strategies.

Streaming usage jumps to top position for popularity 

According to Nielsen, streaming usage has jumped 71% since May 2021, reaching a record 44.8% share of total television viewing in May 2025, narrowly surpassing the combined broadcast-and-cable share of 44.2%. This dramatic rise in popularity reflects a shift in audience behavior, as viewers increasingly divide their screen time across subscription VOD, live streaming and a growing roster of free, ad-supported and FAST channels, thereby reducing the advantage once held by traditional broadcast and cable. 

Nielsen’s data reveals that this shift is broad and affects the biggest platforms on the market. For example, Netflix is up 27% (making it leading SVOD provider in total TV usage for four straight years), YouTube has grown north of 120%, and 11 other streaming services have now captured meaningful slices of viewing. Three of the most popular FAST channels, Pluto TV, Roku Channel and Tubi, now account for 5.7% of viewing (as of May 2025), which is larger than any individual broadcast network this interval.

Evolving business models for streaming services

Nielsen’s data make it clear that the audience shift is forcing a simultaneous diversification in streaming services business models. Platforms no longer rely purely on subscription fees. Major services are layering ad-supported tiers, free ad-supported streaming (FAST) channels are expanding their reach, while hybrid bundles are also widely available, seeking to capture different viewer price points. The results are measurable: ad-supported viewing has grown sharply and streaming’s share of total TV time is now dominated by a mix of subscription, ad-supported and FAST inventory. As such, companies are racing to monetize that mix through higher ad loads, improved ad targeting and new pricing tiers.

This commercial shift has concrete effects on strategy and economics. Netflix, for example, has scaled its ad-supported offering, while platform owners such as Roku publicly forecast that much of future streaming services will be free and ad-supported. This is clear evidence that monetization models are shifting toward hybrid and ad-led models. At the same time, industry reports show digital video advertising and connected TV (CTV) budgets are growing, pushing publishers to invest in ad tech, content rights and churn-reduction tactics (bundles, lower-priced tiers, password-sharing crackdowns). Those moves boost short-term revenue but increase reliance on precise measurement, which has prompted advertisers to demand standard cross-platform metrics before reallocating TV budgets.

The role of advertising and ad-supported formats

Advertising is now a primary source of revenue for many streaming services. Platforms from Netflix to dedicated FAST players have rolled out or expanded ad-supported options, as they seek to capture price-conscious viewers while protecting subscription revenue. By way of example, Reuters reported that Netflix’s ad tier grew from roughly 70 million monthly active users in late 2024 to about 94 million by May 2025, while industry forecasts show digital video taking a growing share of total TV and video ad spend in the future. 

The influx of advertising revenue is changing how streaming services operate. Publishers and platforms are investing in ad tech, programmatic selling, addressability and yield management to increase ad revenue and improve targeting. Measurement providers and buyers are pushing for consistent cross-platform metrics so they can confidently move TV budgets toward CTV. The result is a commercial model that mixes subscription and ad-supported tiers, expands FAST channels, and builds direct-to-advertiser capabilities to scale revenue as streaming usage continues to rise.

For more insights into trends in streaming and content consumption, or to find out more about System73’s content delivery solutions, visit www.system73.com.