2025 Wrap-Up and 2026 Outlook for the Video Entertainment Industry

As we’ve stepped into 2026, it’s time to look back at some of the most exciting changes of 2025 and try to forecast what 2026 might bring to the video entertainment industry.

It doesn’t feel like 2025 was about one big particular moment. Rather, it was about many smaller changes, all connected together. Entertainment became less about platform versus platform and more about who can hold attention and stay visible across the whole web universe. At the same time, audiences became more global, more selective, and more comfortable switching between paid and free, professional and creator-led, long-form and short-form.

Before we look ahead to 2026, it makes sense to reflect on what 2025 really changed and what those shifts might mean for content, licensing, and distribution going forward.

Title Releases Turned into Global Holidays

Maybe not such a 2025-thing only, but something to observe in the few recent years is that streaming has turned event entertainment into a worldwide, synchronized moment, where major releases feel closer to cultural holidays, global or regional, than just simple premieres. All thanks to globalization and world-wide-web (such a 2000s term, but I feel like it adds so much more meaning here than the word “internet”).

What makes it different now is that global platforms release things simultaneously. Squid Game or Stranger Things drops and suddenly it’s there in 190 countries at once. The latest Stranger Things season even crashed Netflix for 5 minutes! This kind of shared timing just didn’t exist in the old broadcast era, when content travelled slowly and premieres were local first. Nowadays internet culture turns these releases into one huge global conversation with memes, TikTok edits, spoilers, reviews, and discussions happen in real time, and you either watch it now or you feel like you are missing out. Of course, platforms are also designing releases to feel like events on purpose: split seasons, countdowns, fan campaigns, FOMO marketing. They want the drop to feel like something bigger than just another title added to the library.

And because the market is so crowded, fewer shows truly break through, so the ones that do carry way more weight. Attention concentrates around the biggest launches, and they become the cultural reference points of the month. Despite of this, back catalogues also get revived like part of the celebration. Older seasons suddenly re-enter Top 10 charts because people rewatch, prepare, or catch up together before the new season hits.

Content Is Still King, Regardless of Origin

Yet another observation which isn’t purely a 2025 thing is how international content is basically the core of global demand now.

Korean, Spanish, Turkish, Chinese, and Japanese titles keep travelling across the globe so naturally that language almost feels like a secondary factor. Once again, audiences prove that if the story is strong and the format is addictive, they don’t really care where it comes from. According to Parrot Analytics, Korean series (including but not limited to Squid Game) have become one of the strongest drivers of streaming demand in the last few years, not just in Asia, but everywhere. Another example is Japanese animation, which the company rated as a “strong-performing” format with high global demand. 

Microdrama, of course, is another perfect example of a format that was long established in China, and now is suddenly spreading across the planet. Microdrama was not something Parrot Analytics specifically mentioned, but we at allrites have written about the Microdrama boom in 2025, and we all know how successful this Chinese-born format is.

In general, looking at these out-of-US production observations, there are two conclusions to make.

Firstly, a global breakthrough of any particular non-English title doesn’t feel like “wow, a non-English title has made it!” anymore… internationalisation of content feels much more natural nowadays. People pay more attention to the content itself rather than where it came from.

The second observation is a world’s rising trend for Asian culture in general. It’s kind of a chicken-and-egg situation, where content plays either the role of the chicken (content drives interest in culture) or the egg (interest in culture was caused by content, for example, White Lotus Thailand season).

The Fight for Attention Calls for Collaboration

Next thing up is a huge change in how entertainment is consumed today, what is consumed, who consumes it, and how every party involved is trying to fight for position.

The competition is no longer Netflix vs Disney+ vs Prime Video, and it’s not really streaming platform versus streaming platform anymore. The real fight is for attention across everything digital: video, audio, social media, gaming, podcasts, and more. It’s all competing for the same eyeballs and the limited hours people have in a day. Entertainment has become very complicated, with lots of parties involved.

And what’s interesting is that streamers and broadcasters started to treat competing platforms differently. Instead of being enemies, they form partnerships among each other, as well as with UGC creators and social media platforms. Some of them decided to work in synergy, turning each other into discovery engines and reach tools.

Millennials and Gen Z drive demand nowadays, and that demand is shaped by creators, fandoms, TikTok culture, and digital-first communities. Previously mentioned report by Parrot Analytics notes that in 2025, the global talent landscape was driven by youth behaviour and creator-led influence with even internet-native stars like MrBeast ranking alongside traditional entertainment figures. And apart from Millennials and Gen Z, entertainment companies are also focusing on Gen Alpha, with kids’ content and influencers of the same age, since those audiences are the next generation of paying customers.

So, success now depends less on a traditional release cycle, and more on relevant presence, the ability to spark conversation, form community, and stay visible across platforms, not just inside one streaming app.

The Rise of Ad-Supported Viewing

With all the economic instability around the world, we can see that consumers are choosing free video, both AVOD and FAST, more and more often. FAST in particular went through visible demand swings throughout the year, which we covered back in June. At certain points, the industry was openly worried about saturation, too many channels (with many of them looking very similar), unclear monetisation, and poor discoverability. But instead of slowing down, FAST adjusted and by the end of 2025 started to look less experimental and much more operational.

Programmers realised that a FAST channel is not a big content dump, so programming strategies became more thought-through, with single IP, sports, premium, and niche channels winning. According to industry data, the number of active FAST channels globally reached around 1,850 by mid-2025, up roughly 76 percent since 2023, showing that despite the slow-down we saw at certain moments, the market kept expanding rather than contracting.

The (bumpy) growth of FAST channels also demonstrates a broader preference for ad-supported viewing. AVOD user penetration globally reached 52.8 percent in 2025 and is projected to grow to around 61 percent by 2029, showing that ad-supported streaming is becoming the default choice for a large portion of audiences worldwide. It’s also worth noticing that AVOD is keeping viewers happy with much faster and broader catalogue expansion than SVOD.

More specifically, this preference for free or cheaper tiers is clearly visible across the major streamers. Netflix reported 40 percent of active ad-supported accounts across the 20 countries, up from 26 percent in Q4 2024. Disney+ ad-supported audiences rose from 35 percent to 44 percent during the same period. HBO Max grew its ad-tier base from 22 percent to 28 percent. 

All of the above doesn’t mean that SVOD is dying out. It is still growing, but at a steadier pace. Forecasts to 2030 show continued CAGR for paid streaming, while also clearly acknowledging rising risks from subscription fatigue and increasing competition from AVOD and FAST models. In markets like Latin America, parts of Europe, and Asia-Pacific, ad-supported and free tiers are now growing faster than paid subscriptions, driven by lower ARPU and higher price sensitivity. Spain is a good example of this hybrid behaviour. The market continues to maintain a strong Pay-TV base, but at the same time is becoming one of Europe’s most active FAST and AVOD markets. A large share of viewers now mix paid subscriptions with ad-supported viewing.

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AI Moves from Fear to Workflow in the Media Industry

Let’s finish the 2025 wrap-up with probably the loudest trend that moved from fear and resistance to everyday use, AI. It entered our lives as a controversial topic and has now become a part of the workflow for almost everyone in the media space. Production houses started adopting AI across development, localisation, metadata, and operational processes, not to replace creativity, but to make things more effective, affordable, and efficient. By the end of 2025, AI stopped being something threatening and simply became a natural topic across all media markets, showing up in panels and helping to lower costs and speed up production timelines.

Another example of AI magic crossing paths with content is AI data training and content licensing. As AI models continue to appear and evolve, the demand for high-quality, legally licensed datasets is increasing. At the same time, media companies are beginning to realise that their archives are not just content libraries, but also valuable training material for startups building AI agents, companies using AI internally, and tech giants leading the AI revolution.

This opens a completely new conversation around rights, ownership, and monetisation in the AI era. Some companies, like ContentX Labs, are already connecting those seeking large volumes of legally cleared content rights with those looking to monetise their catalogues.

2026 Forecasts

Studios and Streamers Adapt to a Creator-Led World

As already mentioned earlier, one of the main changes we already see is the shift from a studio-first model to a creator economy, with YouTube being the leader, representing the largest share of television usage in 2025 (almost 13 percent). For streaming services in particular, it’s a bit tricky to compete with such an entertainment model, where creators fuel the platform with more and more content, attracting more and more viewers. A lot of these creators, as we know, have become really good and professional at what they produce, either by themselves or with help from YouTube itself.

So what do other video entertainment entities, like broadcasters and streamers, have to do? Use YouTube to their advantage, and some of them already do. While some still see YouTube as a competitor, others use it as a clips and promo platform, or even turn it into a real distribution layer. Full episodes and library content are moving onto YouTube more and more often, not just to tease viewers, but to actually be watched there. Last year, UK broadcaster Channel 4 uploaded its older IPs onto YouTube and basically gave that content a second life, thanks to YouTube’s recommendation engine. Another UK broadcaster, ITV, did the same more recently, hoping to maximise its reach as well. A good move, especially considering that YouTube made UK ratings history by beating the BBC on audience reach.

In 2025, we also saw broadcasters and platforms partnering not only with entire platforms, but directly with YouTube creators, inviting them into the world of professional production (aren’t they already professional producers?). At the same time, YouTube became a visible part of B2B media markets around the world. And there is news that brings YouTube even closer to the world of traditional, professional content: the Oscars will move to YouTube starting from 2029, concluding a decades-long run with ABC and Disney.

So, 2026 feels like the year when the creator economy and traditional video entertainment stop pretending they are separate things bring more exciting partnerships and collaborations. Studios will still matter, of course, but creators, YouTube, and hybrid models will play a much bigger role in how content is discovered, distributed, and valued. 

Streamers Diversify Through Video Podcasts

Another thing to expect in 2026 is streamers seriously going after video podcasts.

Part of this comes from a very simple problem. In markets like the US, Netflix is pretty much saturated already. Last year, they tried to diversify by launching games, but that move was not only about internal experimentation, but also about stopping being “just” a streaming app and slowly turning into a broader entertainment hub. Something that can actually fight for attention with other streamers, including YouTube.

And podcasts honestly feel like a very logical move. They are cheaper to produce, they come with loyal audiences, and they bring that personal, real vibe that audiences clearly value right now. There are already a few examples of this. Netflix recently partnered with Spotify, as the latter is finally allowing podcasts to be distributed on other platforms. This is not collaboration for the sake of collaboration, it’s part of a much bigger fight for attention. Netflix is very often at the forefront of these kinds of moves, except maybe when it comes to AVOD… but that’s another story.

Besides partnering with existing podcasts, Netflix is also investing in its own productions. They recently announced original video podcasts featuring Pete Davidson and Michael Irvin, which shows that they’re taking this space very seriously.

But even before Netflix, Fox was already moving in the same direction. With the acquisition of Red Seat Ventures, Fox is clearly betting on video podcasts as part of its streaming strategy, using platforms like Tubi and its new streamer to distribute both video and audio versions. Again, the logic is very familiar by now: creators bring audiences, frequency, and most importantly, authenticity.

My feeling is that others will follow. Podcasts sit right between creator culture and traditional media. They are personal but scalable, informal but still professional. And in a world where attention is fragmented and trust is hard to earn, this kind of content feels like a very natural next step for streamers.

Live Sports Remain in High Demand, with Women’s Sports Rising

Even after years of bidding wars, sports rights are still one of the toughest and most competitive areas in entertainment. Exclusive sports rights remain hard to secure, expensive, and limited in supply, which is why sports continue to sit in the “opportunity area”. According to Parrot Analytics, sports like wrestling, motoring, and fighting are still undersupplied but high in demand.

Interestingly, female sports are becoming a must-have offering too. Women’s sports revenue in the US alone is growing much faster than men’s and is projected to reach around $2.5 billion by 2030, up from roughly $1 billion in 2024. And even with this growth, women’s sports are still priced much lower per viewing hour than men’s, which means there is still room to grow rather than a glass ceiling already reached.

What’s also interesting is who the audience actually is. Most women’s sports fans are not only women who follow sports. Very often, these audiences first follow specific athletes online and only then add women’s leagues to their watchlist. Following broader changes in entertainment, sports fans prefer personal connection through storytelling and cultural presence, without placing raw results or trophies at the centre. Female athletes are breaking through the sports glass ceiling and showing up across documentaries, social media, entertainment shows, and other creator platforms. That crossover is key, because it brings in audiences who would not normally sit down to watch a full match.

So going into 2026, both male and female sports rights will be something video entertainment entities will actively seek to secure.

Rights Will Loosen and Exclusivity Will Become More Selective

Streamers and broadcasters aren’t as eager about exclusivity as they were 5 years back. According to Ampere Analysis, almost 40 percent of titles in the US VoD market are now available non-exclusively, meaning the same film or series can be found on two or more platforms at the same time. That’s up from just 27 percent five years ago, which is a pretty big jump in a relatively short time.

Even more interesting, over 20 percent of titles are now available on three or more services simultaneously, something that would have felt almost impossible during the peak streaming wars around COVID and post-COVID times. These days, AVODs and even SVODs have realised that they’re comfortable sharing their long-tail titles, while keeping exclusivity focused mainly on originals and flagship franchises.

In a saturated market, exclusivity alone doesn’t guarantee retention. Making older or non-core titles available elsewhere helps platforms monetise content that no longer sits at the centre of their growth strategy and, again, fight for eyeballs.

While the US is ahead of other markets in this, similar moves are already being made by broadcasters and streamers across Western Europe. So, heading into 2026, we’re likely to see more flexible rights models, more shared libraries, and a clearer split between what truly needs to stay exclusive and what benefits more from being everywhere at once.

AI Is Not Done Surprising Us

Last but not least, AI. And no, I won’t repeat the obvious things about AI in production, post-production, or localisation. We’ve all heard that already. Also, if I am being honest, we probably can’t predict even 90 percent of how AI will show up in video entertainment in 2026, simply because the field is moving waaay too fast.

That said, there are two things we want to pay attention to this time.

The first one is how “smart” TVs are about to become at the manufacturer level, even before the OS or app level. With things like Google’s vision of an AI companion built directly into devices, screens may start understanding context, preferences, and behaviour of each household user far beyond what recommendation engines do today. This potentially changes discovery, navigation, and even how content is surfaced, without the viewer actively searching for anything. Seems like capabilities of smart TVs will become unlimited as TV manufacturers fight for AI innovation dominance.

The second point loops us back to the creator economy. We already see production companies partnering with online creators to attract attention and build relevance faster. But now some of those creators are not human at all, but AI avatars - virtual personalities already exist as influencers, streamers, and content hosts. And that raises an interesting question for 2026 and beyond: will these non-human creators stay confined to social platforms, or will they start crossing into more traditional formats like series, films, or hybrid productions?

If audiences are already accepting AI personalities in short-form content, gaming, and live streams, it doesn’t feel impossible that we’ll see them integrated into broader video entertainment formats as well. Not as a replacement for human talent, but as another layer in an already very hybrid ecosystem.

With AI developing so fast, who knows what tomorrow brings!

Video Entertainment of 2026

Looking back, 2025 has changed how platforms, channels, studios, and broadcasters measure success and treat things like windowing and exclusivity. Counting subscribers is still important, but so are reach, relevance, flexibility, and long-term value.

What feels even more important is that audiences stay at the forefront of these changes. The rise of creator-led initiatives shows that people value authenticity, representation, and diversity more than ever. They want connection, and sometimes production value doesn’t even matter that much. And as content becomes more travelable across regions and cultures, that demand for relatable and real stories only grows stronger.

Going into 2026, we will likely see even more unexpected partnerships forming, as former competitors continue to collaborate. Studios will work closer with creators, while platforms will share rights more strategically. Business models will keep adjusting to audience behaviour rather than the other way around.

And then there is AI. We already see how it is restructuring workflows, rights conversations, and even discovery. But if we are honest, we probably cannot predict even half of what it will bring next, a  the industry is moving too fast for that.