From Vertical Video to Smart TVs: What’s Next for OTT Streaming in 2025
As 2024 comes to a close, it’s the perfect time to reflect on the remarkable shifts we’ve seen in the OTT industry over the past year. Key trends are reshaping how content owners approach their digital strategies, and with consumer habits evolving rapidly, there’s a wealth of opportunity and innovation on the horizon. According to the Oliver Wyman Global Consumer Survey, video remains the dominant service across Europe, with an average of 1.5 subscriptions per capita. Yet, what’s particularly noteworthy is that around 30% of consumers still don’t have active subscriptions, presenting room for further growth. Alongside this, we’re seeing a shift in viewing preferences: TiVo’s Video Trends Report revealed that viewers are now three times more likely to watch content on TV screens rather than mobile devices.
Building on this, 2024 has also marked a significant rise in vertical video streaming, a trend that goes far beyond platforms like TikTok and Instagram Reels. The New York Times reported that services like ReelShort are transforming content consumption with short, minute-long soap operas and dramas. With production costs under $300,000 per feature and revenue reaching $22 million by December 2024, vertical video is proving both cost-effective and highly profitable. Some viewers have even spent up to $20 to continue watching episodes, showing just how successful these models can be in monetization. During my recent IBC panel discussion, I noted how TikTok’s success lies in removing the decision burden through algorithmic content delivery, so the question remains for 2025, if the mix of short form, different monetization models and low production costs, will continue to serve niche segments.
At Magine Pro, our partnerships in 2024 have given us an up-close look at the changes sweeping through the industry. We launched several successful niche streaming services, including Kulturwelt+, which delivers cultural content to German-speaking audiences, providing valuable insights into the growing demand for specialised, localised content. Additionally, our rapid migration of Filmicca’s platform in just three weeks highlighted the increasing need for efficiency and flexibility in the OTT space. These hands-on experiences have deepened our understanding of the evolving landscape, and as we look ahead to 2025, we anticipate several key trends that will continue to shape the OTT industry.
- Vertical Video Integration is one of the trends we expect to grow in 2025. Traditional streaming services will need to consider incorporating vertical video formats to engage younger, mobile-centric audiences. Unlike Quibi’s previous attempt, services like ReelShort have succeeded by focusing on specific genres and demographics. The platform’s 75% female audience demonstrates the power of targeted content strategies. In 2025, we expect more streaming services to experiment with hybrid formats that combine traditional and vertical viewing experiences, allowing them to reach broader audiences in innovative ways.
- Smart TV Growth. As the shift toward larger screens continues, Smart TV applications will become even more essential. Our data shows an 80% increase in TV screen viewership compared to smaller devices, signalling that bigger screens are becoming the preferred choice for consumers. Streaming services will need to prioritise smart TV apps and ensure seamless integration to meet this growing demand.
- As the streaming space becomes more competitive, Hybrid Monetization Models will be key to success. With subscription fatigue becoming more widespread, successful platforms will need to embrace flexible monetization strategies that blend SVOD, TVOD, and AVOD models. This adaptability will allow them to meet consumer demand for choice, while also diversifying revenue streams.
- Personalisation at Scale will continue to be a priority. The Oliver Wyman Survey found that bundling and personalised content recommendations are top of mind for users, with 31% of European subscribers willing to pay extra for enhanced features. As personalisation technology advances, streaming services will need to deliver more tailored experiences to keep pace with consumer expectations.
- Finally, as the industry becomes more competitive, Operational Efficiency will be crucial. Streaming services will increasingly focus on improving their operational processes through automation and simplified tech stacks. This will enable them to maintain profitability while delivering exceptional experiences to viewers.
For content owners, 2025 will be about making strategic choices in technology partnerships. The days of building complex in-house solutions are giving way to proven, scalable platforms that can deliver immediate results while controlling costs.
At Magine Pro, we’re committed to helping content owners navigate these changes. With our end-to-end OTT platform, we provide the tools and expertise needed to create engaging streaming experiences that foster viewer retention and revenue growth. As we enter 2025, there’s no doubt that the opportunities in streaming remain substantial. The key to success will be striking the right balance between traditional viewing experiences and new, emerging formats, all while combining compelling content with technical excellence and operational efficiency. Those who can do this will be well-positioned to resonate with their audiences and thrive in an increasingly competitive market.
Curious about how the key trends shaping OTT in 2025 could impact your business?
Discover how Magine Pro can help you stay ahead of the curve with personalised streaming experiences, smart TV integration, and hybrid monetization models. Book a meeting with us for a demo and learn how our flexible platform can help you navigate the evolving OTT landscape and drive growth.
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