The Television Revolution: How Streaming and AI are Transforming Entertainment in 2025
A Historic Milestone in Television
In a landmark development, streaming has achieved a historic milestone by surpassing the combined share of broadcast and cable television for the first time. According to Nielsen’s monthly report, streaming now represents 44.8% of TV viewership, while broadcast (20.1%) and cable (24.1%) together account for 44.2% of TV consumption.
The Streaming Landscape
The streaming sector has experienced remarkable growth, with the number of major streaming platforms expanding from five to eleven. The original lineup included Netflix, YouTube, Hulu, Prime Video, and Disney+. YouTube has emerged as a dominant force, claiming 12.5% of all television viewing – the highest share for any streaming platform to date. Additionally, free ad-supported television (FAST) services like PlutoTV, Roku Channel, and Tubi have gained significant traction, collectively accounting for 5.7% of total TV viewing.
Technological Advancements and AI Integration
Artificial intelligence has become a cornerstone of modern television technology. While AI isn’t new to TVs, having been used for picture quality improvement and upscaling lower-resolution content to 4K, its capabilities are set to expand significantly in 2025. AI-powered processors can now recognize content types and automatically adjust settings to reduce issues like motion blur during fast action scenes and improve color transitions.
Changing Consumer Behaviors
The industry is responding to growing subscription fatigue, with 52% of US TV consumers feeling pressured by rising subscription costs. This has led to a shift toward more affordable, flexible options. The rise of free, ad-supported platforms signals an opportunity to serve viewers looking to cut costs without compromising on content.
Future Outlook
Despite recent challenges, the outlook for broadcasting is becoming more optimistic. Industry experts suggest that now is the time to invest in infrastructure upgrades to leverage technological advances and future-proof operations against evolving audience expectations. Looking ahead, streaming subscriptions through wholesale distribution are expected to reach 60-70% in mature markets, driven by bundling and aggregation. Industry experts predict the emergence of three to five ‘central hubs’ as leading distributors, with new partnership deals expected throughout 2025.
