This shift necessitated hybrid business models. Subscription services saw growth slow, while ad-supported tiers boomed. PwC forecast that by the end of the decade, ad-supported video-on-demand would account for more than a quarter of total streaming revenue. Netflix, Amazon, and Disney+ all embraced hybrid subscription and ad models to attract cost-conscious consumers. Connected TV advertising was projected to reach $510 billion by 2029, reaching 45% of traditional broadcast TV ad revenues. Live events, concerts, and immersive experiences also saw significant growth, validating the enduring value of in-person engagement in an otherwise digital world.

Human attention spans are adapting to micro-content. Vertical, short-form videos under 60 seconds have become the primary discovery engine for music, comedy, and news, forcing traditional media brands to rethink how they hook an audience within the first three seconds. Summary: The Living Mirror of Society

The shift was less dramatic than the term "AI revolution" might suggest but no less consequential. According to S&P Global's January 2025 Industry Credit Outlook, AI had not yet materially transformed legacy media companies' business strategies or financial metrics. However, the report noted that ad tech firms including Alphabet, Meta, and Tencent had dramatically increased capital spending on AI infrastructure. In the near term, media companies were expected to use AI primarily to reduce content creation time and costs, with applications in pre-production preparation and post-production finishing.

The Evolution of Entertainment Content and Popular Media in the Mid-2020s