"From Subscribers to Ad Revenue: Streaming Platforms Shift Growth Strategy"
by Roh Kyungjo
Published 15 Apr.2026 14:25(KST)
Updated 15 Apr.2026 15:45(KST)
As monthly subscription fees for major streaming platforms such as YouTube and Netflix are raised, resulting in increased advertising revenue, the core revenue model is rapidly shifting from "subscriptions" to "advertising."
On April 15, the streaming platform industry focused on YouTube’s recent decision to raise the price of its Premium plan for new subscribers in the United States from $13.99 to $15.99 per month. This is YouTube’s first price increase in about three years. The Premium Music plan increased from $10.99 to $11.99 per month, and the most affordable Premium Lite plan rose from $7.99 to $8.99 per month. Existing subscribers will be subject to the new prices starting in June.
Last month, Netflix also increased its subscription fees by $1 to $2 per month in countries such as the United States and Argentina. In the United States, the ad-supported Standard plan rose from $7.99 to $8.99 per month, while the Premium plan increased from $24.99 to $26.99 per month. Depending on whether users watch ads, there is roughly a threefold difference in pricing. In Korea, some Netflix subscription plans were adjusted upward in May of last year.
The reasons cited for these price hikes include: securing sufficient funds to obtain live broadcasting rights; increasing average revenue per user (ARPU); and attracting more users to relatively inexpensive ad-supported plans, thereby maximizing advertising revenue. In particular, industry insiders believe that, given the limited room for further subscriber growth, boosting advertising revenue is essential for continued expansion.
Since Netflix introduced its ad-supported plan in November 2022, the monthly active viewers (MAV) for this plan have reached 190 million, accounting for 58% of its total 325 million global subscribers. Netflix has set this year’s advertising revenue target at $3 billion (about 4 trillion won), which is twice last year’s goal. In Korea alone, Netflix's MAV has surpassed 10 million. According to a Nasmedia survey, 59.7% of online video service (OTT) users in Korea currently subscribe to ad-supported plans.
For YouTube, advertising revenue already constitutes 67% of its total sales. Recently, the company has accelerated revenue growth by refining its Shorts advertising model.
As the trend of rising subscription fees continues, it is expected that the advertising influence of streaming platforms will further increase in terms of user engagement. Kim Byungjo, Head of the Media Division at Nasmedia, stated, "There is a clear trend of media consumption and advertising acceptance shifting toward video content," adding, "Streaming platform advertising is being positively evaluated in terms of sophistication, reliability, and user engagement."
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