As we enter the Streaming 2.0 phase (or maybe it’s Streaming 3.0 at this point), a key debate is how to capture and maintain consumer attention in such a fragmented world. Competition for ad dollars is fierce, and the numbers don’t lie: Short-form giant TikTok is expected to take in $32 billion in 2025 full-year advertising revenue. Google’s YouTube, also fueled by user generated content, absorbs upwards of $35 billion annually from advertisers who otherwise would be spending that money on SVOD ad tiers and the floundering linear TV business. But TikTok and YouTube’s haul is peanuts compared to Meta, which in Q3 alone brought in more than $50 billion through its social platforms including Facebook and Instagram. Analysts expect Meta to close out 2025 with $200 billion in ad revenue while most streamers don’t even report standalone SVOD ad tier revenue – probably because it would be such a comparatively small number, although we should note that industry consensus suggests a high growth rate, with Netflix potentially tripling its ad tier revenue in 2025 vs. 2024 and others also growing fast. We’ll see where it all shakes out, assuming we ever get the numbers.
The larger point is that UGC platforms ranging from YouTube to more pure social media attract massive engagement that converts into billions in advertising as brands fight to reach those eyeballs. That’s why Disney’s announcement at the Consumer Electronics Show this week in Vegas that Disney+ will add “vertical” content to its mobile app was so intriguing. Disney has been offering “Verts” on its new ESPN flagship mobile app since it launched in August, so the expansion to Disney+ suggests that execs are pleased with the response so far. According to Disney’s CES press release, “the experience will evolve as it expands across news and entertainment and delivers a more personalized, dynamic experience that reinforces Disney+ as a must-visit daily destination.” That last part is key because now that streaming has become more mainstream, everyone is scrambling to give consumers ever more reasons to visit their platforms and actually stick around despite so many social media and UGC temptations elsewhere. Disney also announced a slew of new or enhanced ad tools at CES, including a new AI video generation tool that lets brands spin up quick video ads tailored not only to hyper-niches of users but that also respects context and maximizes placement for effectiveness. And the more Disney and others can integrate a social-media-like experience into the premium streaming mix, the stickier the experience.
Next? While more social media-esque integration is smart (and perhaps a competitive necessity), it’s also becoming more common across services. In May, Netflix announced it would test a vertical feed to make content discovery “easy and fun” within the mobile app, with CTO Elizabeth Stone telling the TechCrunch Disrupt conference in October that Netflix doesn’t want to be TikTok but will continue to experiment offering “something more snackable” for its members. NBCUniversal’s Peacock has also tested vertical content within its mobile app. But generally speaking, the industry’s vertical experimentation has been limited to mobile apps and remains highly curated. That means no random UGC uploads from normies but plenty of highlight reels and maybe a few vertical videos from celebs promoting shows (likely prodded by marketing departments). But in the end, creating a more social experience depends on more than adding new video formats that sync up with phone culture. Not only will they need to fully integrate with larger smart TV screens but also get more interactive over time, giving viewers more ways to participate in the experience. YouTube for one offers vertical videos both on mobile and through its smart TV app – and from pretty much anyone whose short-form videos trigger the algorithm. That’s a much more chaotic environment but one of the many ways that YouTube approaches consumers differently than most premium streamers. It’s unclear whether major SVODs will ever open up their UIs to random UGC content, but the eventual migration of vertical videos and more social features to bigger screens is probably inevitable. We’re still relatively early days in this adventure, but the experimentation happening now on mobile devices offers a glimpse of what’s coming.
