Video Services on Connected TV Market - Global Forecast 2026-2032

The Video Services on Connected TV Market size was estimated at USD 18.47 billion in 2025 and expected to reach USD 19.82 billion in 2026, at a CAGR of 8.10% to reach USD 31.87 billion by 2032.

Streaming and connected TV devices are at the center of a fundamental shift in how audiences consume video content, with the channel now accounting for nearly half of total television viewing time in the United States. As of March 2025, streaming represented 43.8% of overall TV time, reflecting a rapid migration from traditional broadcast and cable channels to internet-delivered services that prioritize convenience and personalization. Moreover, over 80% of U.S. households now own at least one connected TV device, underscoring the pervasive nature of this platform in modern media consumption

The transition to ad-supported streaming is similarly remarkable. Recent industry data shows that 72.4% of the time U.S. viewers spend with television is in ad-supported environments, with streaming platforms contributing 42.4% of that ad-supported viewing. This rise indicates that consumers are increasingly amenable to trade-offs between free or lower-cost content and advertising exposure, driven by subscription fatigue and the proliferation of hybrid business models

Meanwhile, free ad-supported platforms are expanding their reach at an accelerated pace. Platforms such as YouTube captured 12.8% of connected TV viewership in June 2025, outperforming many paid services, while free streaming channels have seen comparable growth by offering content without subscription fees. This trend suggests that viewers who once relied exclusively on paid portals are now seeking budget-friendly alternatives that maintain a high degree of content variety and accessibility

Amid these shifts, advertising has become a primary driver of industry growth. Investment in connected TV advertising is forecast to soar, fueled by advancements in AI-powered ad targeting and measurement that enable precise audience segmentation and campaign optimization. As a result, advertisers view connected TV as an indispensable channel for engaging captive audiences in a brand-safe, premium video environment

The adoption of AI and machine learning is revolutionizing the delivery and effectiveness of advertisements on connected TV platforms. By leveraging advanced algorithms to analyze real-time viewer data, marketers can dynamically optimize ad placements, tailor messaging to individual preferences, and measure outcomes with unprecedented granularity. This level of personalization not only enhances viewer engagement but also drives higher returns on ad spend, as campaigns become more contextually relevant and performance-oriented

Meanwhile, the battle for control of the streaming operating system has intensified, with key players jockeying for supremacy in how consumers access content. The recent acquisition of Vizio by a retail giant and the launch of a neutral TV OS by a leading ad tech firm underscore the strategic importance of proprietary platforms. This operating system competition will shape revenue models, data access, and advertising integrations, redefining partnerships across the CTV ecosystem

Concurrently, shifting consumer attitudes toward subscription pricing and economic uncertainty have prompted streaming services to recalibrate their offerings. Inflation-driven price increases across major paid platforms have led some subscribers to reconsider their options, driving them toward lower-cost or free ad-supported alternatives. This dynamic underscores the delicate balance between monetizing content through subscriptions and maintaining audience retention amid broader financial pressures

Live sports and event content are gradually migrating from traditional broadcast channels to streaming platforms, reshaping long-standing viewing habits. Forecasts indicate that more than 90 million U.S. viewers will stream a sports event at least once per month in 2025, highlighting the urgency for rights holders, leagues, and platforms to collaborate on premium live-streaming experiences that meet consumer expectations for accessibility and interactivity

In early 2025, the United States introduced a series of escalated tariff measures aimed at curbing circumvention and reinforcing domestic manufacturing, resulting in a complex two-tier tariff system for imports suspected of transshipment through intermediary nations. These measures, designed to deter tariff evasion, impose levies that reached as high as 145% on certain imports originating from China, creating new compliance challenges for global supply chains and raising questions about enforceability at a scale compatible with modern electronics production

As a direct consequence, many television manufacturers have initiated a strategic shift in production footprints, relocating assembly and component sourcing to Mexico and other lower-tariff jurisdictions. Companies with established operations in Mexico, such as major TV brands, are leveraging free trade provisions to mitigate duty burdens, while select manufacturers have announced plans to build or expand facilities in the United States to avoid tariff exposure altogether. These realignments, however, involve substantial capital investment and restructuring, potentially impacting lead times and product availability

The imposition of reciprocal tariffs has also led to an observable uptick in wholesale prices for consumer televisions, with industry analysts projecting modest declines in annual shipments due to reduced consumer affordability. According to recent research, U.S. TV brands may be compelled to pass rising input costs to retailers and end-users, potentially dampening demand during peak seasons and slowing the cadence of product refresh cycles in the second half of 2025

Beyond televisions, a broad array of connected devices and consumer electronics are feeling the impact of tariff-driven price increases. One industry association estimated an 11% price hike on certain imported TVs alone, translating to an additional $1.9 billion in consumer spending for devices that continue to sell. This cascade effect extends to smartphones, tablets, and gaming consoles, where average price increases could range from $5 on headphones to up to 22% on other connected gadgets, with potential annual economic costs of over $120 billion across ten categories of tech products

The connected TV landscape is increasingly defined by three principal revenue models, each catering to distinct consumer preferences and monetization strategies. Advertising-based video on demand has emerged as the fastest-growing segment, driven by consumers seeking free or lower-cost access in exchange for viewing advertisements, and it offers advertisers the opportunity to reach targeted audiences at scale. Subscription video on demand remains foundational for many established platforms, delivering predictable recurring revenue streams, while transaction-based video on demand provides a flexible, pay-per-use model for users who desire granular control over content purchases and rentals without long-term commitments. This trinity of revenue approaches shapes competitive positioning and campaign strategies across the industry

In parallel, the diversification of content genres has become a critical lever for engagement and differentiation. Within the comedy category, audiences can choose from romantic comedies that blend heartfelt narratives with humor, episodic sitcoms that foster regular appointment viewing, or stand-up specials that capitalize on viral talent showcases. Dramatic programming spans crime sagas that captivate with suspenseful storylines, romance-driven narratives that draw in loyal devotees, and thrillers that push creative boundaries with high-stakes plotting. The kids and family sphere encompasses both animated features that delight younger viewers and preschool-focused series designed for early childhood development, while sports content ranges from esports competitions that appeal to digitally native demographics to live sporting events that replicate the communal viewing experiences of traditional broadcasts

This layered segmentation reveals nuanced opportunities for platform operators and content creators to tailor experiences and investment priorities. Revenue models inform technology partnerships and ad-tech integrations, while genre depth facilitates audience loyalty and cross-promotional synergies. Taken together, these insights underscore the imperative to align platform capabilities, content strategies, and monetization frameworks in a cohesive ecosystem that resonates with modern consumer expectations.

Regional dynamics in connected TV adoption reveal distinct growth patterns and market drivers across global territories. In the Americas, the United States remains the largest single market by device penetration and ad spend, underpinned by mature broadband infrastructure, early technology adoption cycles, and robust content licensing frameworks. Marketers in this region continue to increase over-the-top and connected TV budgets at rates above global averages, leveraging advanced targeting capabilities and data-driven measurement to optimize campaign performance in a highly competitive media environment

In the Europe, Middle East and Africa region, growth trajectories are shaped by variable economic conditions, diverse regulatory landscapes, and linguistic fragmentation. Major Western European markets demonstrate steady year-over-year increases in streaming engagement, while emerging markets in Eastern Europe and parts of Africa are experiencing accelerated adoption as mobile broadband expands. Regulatory considerations around data privacy and cross-border content rights require platform operators to navigate a complex web of localized compliance mandates, influencing strategies for regional partnerships and content licensure

The Asia-Pacific region stands out as the fastest-growing segment for connected TV, driven by rapid infrastructure development and a diverse mix of global and local content providers. Countries such as China, India and Indonesia are experiencing double-digit growth in streaming subscriptions and ad spending, supported by expanding mobile internet coverage and a surge of domestic originals that resonate with local audiences. This expansion presents both opportunities and challenges, as global media companies seek to partner with or acquire local players to establish footholds in culturally nuanced markets with unique viewer preferences

In North America, one device maker has maintained its leadership position by capturing more than one-third of the connected TV device market share, followed by two major technology firms that together account for over 30% of shipments. These standings are reinforced by rapid year-over-year growth rates among certain players, reflecting both product innovations and strategic alliances that expand distribution channels and increase brand visibility across retail and e-commerce platforms

A significant recent development saw a leading streaming hardware company announce an integration with a prominent ad demand-side platform, enabling advertisers to access upwards of 80 million U.S. connected TV households through unified audience identifiers. This partnership enhances cross-platform targeting capabilities and paves the way for programmatic ad buying at scale, marking a pivotal moment in bridging linear-style reach with digital-first precision

On the platform side, a major subscription streaming service’s decision to introduce and rapidly scale an ad-supported tier has yielded strong early results. By offering lower-cost access in exchange for commercials, the service has boosted subscriber growth and improved revenue per hour viewed, helping it close the monetization gap with premium ad-free competitors. This hybrid approach demonstrates the potential of flexible pricing models to address diverse consumer segments and maximize lifetime value

In the content and distribution ecosystem, traditional television manufacturers have adopted programmatic and addressable advertising technologies while forging alliances with major ad tech vendors. These collaborations improve ad insertion, fraud protection, and audience measurement, enabling platforms to offer advertisers robust transparency and performance metrics. As companies contend for share in an increasingly crowded marketplace, strategic partnerships and differentiated product offerings will determine competitive leadership in the connected TV domain

To thrive in today’s accelerated connected TV environment, industry leaders should prioritize the development and integration of advanced personalization engines powered by artificial intelligence. By investing in machine learning capabilities that optimize ad sequencing, content recommendations, and viewer engagement paths, platforms can deliver more relevant experiences that reduce churn and elevate monetization potential.

Organizations must also reassess and diversify their supply chain and content acquisition strategies in light of evolving trade policies. Building resilient partnerships with regional manufacturers and local content producers will hedge against tariff-driven cost fluctuations and align offerings with the cultural preferences of target markets, thereby preserving both profitability and consumer relevance.

Furthermore, a clear segmentation strategy that aligns revenue models with content genres and regional preferences is essential. Executives should allocate resources to optimize ad-supported, subscription, and transactional models while deepening investments in high-growth genres such as esports, animation, and true-crime drama, ensuring that product roadmaps and marketing initiatives resonate with key audience cohorts.

Lastly, forging strategic alliances with ad tech partners, distribution platforms, and rights holders will unlock new revenue streams and enhance operational efficiencies. By co-creating integrated solutions that span data analytics, programmatic advertising, and cross-platform measurement, companies can establish differentiated value propositions and secure long-term growth in a competitive connected TV landscape.

This study employs a mixed-method research framework that combines primary quantitative data collection with qualitative expert insight to ensure comprehensive coverage of the connected TV market. Quantitative analysis involved aggregating publicly available data sources, proprietary platform analytics, and third-party measurement reports to map device penetration rates, viewership patterns, and advertising spend trends.

Qualitative insights were gathered through in-depth interviews and advisory discussions with senior executives from leading content providers, ad tech firms, and distribution partners. These conversations provided contextual understanding of strategic priorities, operational challenges, and emerging technologies shaping the industry.

Data verification procedures included triangulating key metrics across multiple independent sources and conducting consistency checks against historical benchmarks. Supplementary desk research encompassed regulatory filings, government trade data, and equipment manufacturer disclosures to validate supply chain and tariff-related information.

Finally, the research synthesis process integrated thematic analysis of qualitative inputs with statistical modeling of quantitative data, enabling the generation of actionable segmentation frameworks, regional profiles, and scenario-based projections. This methodology ensures the robustness and credibility of findings presented in the report.

The connected TV sector is undergoing a profound transformation driven by technological innovation, evolving consumer expectations, and shifting trade policies. Ad-supported streaming has emerged as a dominant monetization model, while hybrid subscription tiers and transactional offerings cater to diverse audience needs. Technological advancements, including AI-driven personalization and programmatic advertising, are enhancing engagement and ROI for marketers.

Tariff adjustments in 2025 have reshaped supply chains, prompting manufacturers and service providers to realign production geographies and supply strategies. These shifts underscore the importance of resilient partnerships and diversified sourcing to mitigate cost pressures and maintain product availability.

Segmentation analysis reveals that revenue models, content genres, and regional dynamics offer distinct opportunities for differentiation and growth. The ability to tailor offerings across advertising, subscription, and transactional frameworks while investing in high-growth genres such as esports, animation, and live sports will be critical for audience retention and monetization.

Industry leaders that embrace agile technology integrations, strategic alliances, and data-driven decision-making will be best positioned to capitalize on the rapid expansion of connected TV. By aligning operational capabilities with emerging market trends, stakeholders can secure sustainable competitive advantage in an increasingly fluid media landscape.

To secure comprehensive insights and strategic foresight tailored for your organization’s objectives in the connected TV arena, reach out to Ketan Rohom, Associate Director of Sales and Marketing at 360iResearch. Engaging directly with Ketan will allow you to gain privileged access to the full market research report on video services across connected TV platforms, complete with data-driven analysis, actionable recommendations, and proprietary intelligence. By connecting with him, you can discuss customization options, licensing terms, and exclusive briefings that will empower your team to stay ahead in a rapidly evolving market. Elevate your decision-making and capitalize on the latest trends by partnering with Ketan Rohom today to obtain the definitive resource for navigating the future of connected TV.