Observed Signal · Oct 28, 2025 · Market Analysis · Source: State of Streaming · Impact: 3/5 · Sentiment: Positive
Movies Now Drive Nearly Half of U.S. Streaming Revenue
A Parrot Analytics analysis cited by State of Streaming finds movies have risen to nearly 50% of U.S. streaming revenue in 2025, up from about 27% in 2022. The shift is driven largely by older library titles: Pay-2/3 and library-window films now represent roughly two-thirds of total movie value, versus about a quarter in 2022. Platforms are favoring licensed films because they offer more predictable economics for profitability and subscriber retention; Netflix Co-CEO Ted Sarandos is quoted saying deep film libraries create a reliable "weekend movie" habit that helps reduce churn. The piece notes live sports remain a high-stakes next frontier for streaming services but carry more complex economics compared with movies, which currently act as stable revenue and retention assets.
Shows a meaningful shift in content value and monetization strategy for streaming platforms — movies and library licensing now underpin revenue and retention strategies, affecting content spend, licensing deals and CTV ad inventory planning.
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Key Takeaways & Evidence Grounding
- Parrot Analytics analysis reports movies account for nearly 50% of U.S. streaming revenue in 2025, up from 27% in 2022.
- Pay-2/3 and library-window films now make up about two-thirds of total movie value, up from roughly one quarter in 2022.
- State of Streaming published the article on 2025-10-28 citing Parrot Analytics and other industry analyses.
- Netflix Co-CEO Ted Sarandos is cited saying a deep film library produces a "weekend movie" habit that helps prevent subscriber churn.
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Streaming Now Dominates US TV
A Samba TV report published and covered by Advanced Television finds streaming now accounts for 60% of all US television viewing, driven by a 46% year-over-year increase in streaming hours. The shift is fueled by lower-cost, ad-supported subscription plans—chosen by more than half of SVOD subscribers—and wider adoption of multiple services per household. Audiences increasingly prefer on-demand viewing (the report says when content is available on both linear and streaming, over 90% watch on-demand), and platforms are extending their reach into former linear strongholds such as live sports and blockbuster movie releases. The report and coverage note a persistent gap: viewer attention to streaming has outpaced advertising investment, even as the global TV and video market is projected to approach $1 trillion by 2030.
Research: $5.7B Non-Streaming Movies & TV Market
Research from Worldpanel by Numerator and analysis by Predictionist finds U.S. consumers spent $5.7 billion on movies and TV outside streaming subscriptions between October 2025 and March 2026. Movie theaters drove 65% of that spending, with about 25% of Americans attending theaters (average 4.1 visits per six months). Digital rentals and purchases remain significant—9% of Americans bought a digital movie and 10% rented one in the period—and TV series purchases average about $18 per transaction. Predictionist projects continued ticket-price inflation (8.9% annually) could push the average U.S. ticket to $38 by 2036. The report also highlights concerns about digital 'ownership' (licensing), physical media decline, and regulatory moves such as California's AB 2426 requiring clearer disclosure that digital storefront sales are licenses.
Movies Drive Streaming Growth; Agencies Seek Data Integrity; Ströer Rises
This week’s VideoWeek digest highlights three main trends. First, Parrot Analytics data show movies now represent 48% of US streaming revenues in 2024, with Disney+ deriving 74% of its revenue from films, underscoring movies as a growth engine for streaming services. Second, UK agencies’ media-buying decisions are led by trust and data integrity, with price and ROI also influential; ethics remain important but less operational, according to Experian and Insight Avenue. Third, Ströer’s stock rose amid sale reports suggesting a bid for its core advertising business by an investor group led by I Squared Capital, reflecting ongoing consolidation in ad tech. The piece also notes younger sports fans favor highlights and social content over live events, per Ampere Analysis. Overall, the update blends streaming economics, data-driven buying, and deal activity shaping the advertising ecosystem.
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