Pluto TV Faces User Decline Amid Fierce Competition in Streaming Market

Pluto TV, the free ad-supported streaming television (FAST) service now under the Skydance umbrella, is navigating a challenging period as its monthly active user base has experienced a notable contraction. During a third-quarter earnings report on Monday, Skydance—the entity formed following the merger of Paramount and Warner Bros. Discovery—disclosed that Pluto TV currently serves approximately 75 million monthly active users.

A Shift in User Metrics

The latest figures represent a downward trend for the platform. Internal data previously indicated that the service reached 89.6 million monthly active users in 2025, following a reported growth of 5.4 million users that year. This peak followed a steady climb from 80 million users in May 2023 and an estimated 84.2 million in 2024. The current count of 75 million suggests a significant departure from the growth trajectory seen in previous years.

This decline presents a strategic hurdle for Skydance CEO David Ellison. Following the recent merger with Warner Bros. Discovery, Ellison is tasked with building a streaming powerhouse capable of challenging industry titans such as Netflix and Disney. The performance of Pluto TV is a critical component of this broader ambition.

Technological Convergence and Interface Changes

In an effort to streamline operations, Skydance has been working on a “convergence” project, merging the underlying technology of Pluto TV with Paramount+. According to Ellison and co-CEO Ynon Kreiz, the first phase of this transition is largely complete, with Pluto TV now operating on the same technological infrastructure as Paramount+ across all major platforms. The executives noted that this shift is intended to lower operating costs, accelerate product development, and enhance personalization and monetization capabilities.

However, the platform has also undergone a significant interface overhaul. In September, the service refreshed its layout to emphasize on-demand content, moving away from its traditional focus on always-on live channels. While Skydance management maintains that these updates are improving the user experience, some internal employees have suggested that the interface changes may have contributed to the recent dip in user engagement.

The Competitive Landscape

Pluto TV, which launched in 2014, was a pioneer in the FAST space. Despite its early lead, the market has become increasingly crowded and competitive. Data from Nielsen indicates that while Pluto TV’s share of US TV viewing peaked at 1% in February 2025, other free streamers have seen substantial growth.

Tubi, owned by Fox, has seen its monthly active user base climb from 74 million in September 2023 to 110 million as of August 2026. Similarly, The Roku Channel has expanded its reach, growing its US TV viewing share from 1.1% in May 2023 to 2.9% in August. In the broader streaming ecosystem, YouTube continues to lead, commanding a 15.8% share of US TV viewing as of August, significantly outpacing competitors like Netflix.

As Skydance integrates its newly acquired assets, the company faces the ongoing challenge of maintaining its footprint in a streaming market where audience loyalty is increasingly being captured by rapidly growing rivals.

Source: businessinsider.com