Matt Fitz-Henry

Free streaming is growing fast. Will it catch up with paid streaming in share of US time spent? YouTube, Roku, and Tubi have grown their collective share of viewing time from 10.9% to 17.2% in just two years. Paid streaming grew too, from 18% to 21.3%. But it's undeniable that free is paying off. YouTube's growth and its algorithmic flywheel have been covered a lot. Less so are Roku and Tubi, both of which doubled their viewership with extensive libraries, super-serving passionate communities, lean-back and lean-forward television. Most importantly, they don't have to convince people to become or remain subscribers. All they have to do convince them to create an account and log-in, which delivers far better monetization, and keep coming back. (I say "all" in jest, but acknowledge all of these things are incredibly difficult to do in practice). As Streamonomics® readers know, the Freemium Tightrope makes it difficult for streamers to offer free and paid under the same brand. Give away too much free content, it's hard to get people to pay. Hulu and Peacock once have free tiers, but discontinued them primarily for this reason. But as competition against AI-driven hyperscalers gets more intense, I've argued streamers will need multiple moats: 1. Content/UX/brand that drives frequency, duration, and willingness to pay 2. A self-funding, integrated upper funnel By self-funding, I mean profitable on its own (YouTube, Spotify). By integrated, I mean one app, one brand, easy upgrade path (the above plus Vix for Spanish-speaking audiences and JioStar in India) Free funnels can come in different forms. Netflix's original free upper funnel was password sharing. One of Amazon's is their constant inflow of people searching for single TV shows or movies, since they know they will always find them in the Amazon ecosystem. THE BIGGER PICTURE: → Free streaming's 58% growth vs paid's 18% signals a macro trend → Paramount is the only premium streamer that owns a free one (Pluto). Will the brands merge? → Roku and Tubi prove there's more than one way to win free streaming Which paid streamer cracks the freemium code first, and how?

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Netflix’s move to acquire Warner Bros. Discovery (studio + HBO/HBO Max/DC, with Discovery’s linear networks spun into a separate company) is a structural shock: it effectively creates a single, dominant global studio‑streamer with unmatched IP, data, and distribution, and forces everyone else to pick a lane (scale, niche, or sell).​ Netflix gains a true studio backbone and library: Netflix marries its hit originals (Stranger Things, Squid Game, etc.) with Warner/HBO IP, filling a long‑term weakness in evergreen franchises and deep catalog.​ They become a de facto “super‑bundle”: a combined Netflix + HBO Max offering dramatically increases time‑spent, reduces churn, and gives Netflix more leverage on pricing, distribution, and talent.​ For Warner Bros. Discovery (and Discovery Global), their equity holders get cash plus Netflix stock, effectively rotating from a leveraged legacy media play into the scaled streaming winner.​ The spun‑off Discovery Global becomes a leaner, linear‑heavy networks company (news, sports, general entertainment), likely under pressure to cut costs, chase carriage/retrans, or find a future merger partner.​ Paramount and Comcast just lost the last “transformative” studio asset at scale; their bids reportedly fell short of Netflix’s per‑share offer.​ This accelerates consolidation pressure: Paramount (even with Skydance) and Comcast/NBCU now look relatively sub‑scale in streaming versus a Netflix‑WBD behemoth, increasing odds of further M&A, joint ventures, or aggressive licensing to survive.​ Change is happening and will continue in the entertainment industry. That is guaranteed.

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Roku just shocked Wall Street: 15% revenue growth + a surprise profit in Q2 2025. Here’s why this matters if you’re an indie filmmaker or small production company: Roku isn’t just selling devices anymore—it’s becoming a serious streaming powerhouse. ✅ $1.11B in revenue (beating expectations). ✅ 35.4B streaming hours (+5.2B YoY). ✅ Platform growth (+18% YoY) from ads + subscription revenue. ✅ Acquisition of Frndly TV (low-cost streaming) to expand content reach. This surge isn’t just numbers—it’s a clear signal: ad-supported streaming (AVOD) is booming. Roku thrives on free, ad-driven content, making it fundamentally different from subscription-heavy giants like Netflix or Hulu. And here’s where it gets interesting for creators: 🎬 Launching content on Roku is far more accessible than pitching to closed platforms. If you’ve got a finished indie project or micro-series, Roku offers a legitimate OTT pathway—without the gatekeepers. 🎯 With better ad-tech (Amazon DSP integration), your niche content stands a greater chance of reaching the right audience. 💡 Indie takeaway: The streaming wars aren’t only for billion-dollar studios. As platforms like Roku profit and scale, they open new doors for small creators willing to think like distributors, not just filmmakers. 🔑 If you’ve been looking for a practical way to test your content in the streaming market—Roku might be worth a serious look.

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