Recent research from Parks Associates, presented at the StreamTV Show in Denver, CO, highlights a significant trend: spending on streaming services has dropped by 30%, with the average U.S. household now spending about $64 per month on OTT (Over-The-Top) SVOD (Subscription Video On Demand) services, down from $90 in 2021.
This shift reflects a broader reevaluation of entertainment budgets. According to Sarah Lee, Research Analyst at Parks Associates, “Consumers are spending less, but rather than go without, many are using ad-based alternatives to save on costs. A service needs to provide unique and ongoing value if it is to charge a premium.”
The data from Parks Associates indicates that households are subscribing to fewer services. In early 2024, only 20% of U.S. households reported paying for nine or more services, down from 29% in late 2023. The average number of streaming subscriptions per household has also fallen below five. Additionally, 32% of households that cancelled a service in the past year did so to reduce expenses.
Elizabeth Parks, President and CMO of Parks Associates, pointed out that all household services face challenges as consumers reassess their spending. “As consumers become more selective about their subscriptions, services that can offer a compelling mix of content and an excellent user experience will stand out. Educational content, ease of use, and seamless integration across devices are key factors that will influence consumer decisions,” she explained.
From the article, "Americans Now Spend Just $64 a Month on Streaming Down From $90 in 2021" by James Guttman
Tubi TV knows that not everyone wants to pay for premium content. “We see a strong desire among viewers who want free content, whether they’re viewers in search of value or subscription viewers who...
The churn rate for OTT video services is 19 percent of U.S. broadband households, according to Parks Associates, meaning that roughly one in five households has canceled a streaming service in the las...
Perhaps aware of Chromecast's limitations, Google unveiled Google TV's successor, Android TV, at its I/O conference last year. Compared to Google TV, Android TV is far less complex, with a standard in...
Global research group TDG* estimated that global advertising revenue from OTT TV is expected to grow nearly four-fold between 2015 and 2020. By 2020, OTT TV ad revenue will be approximately US$40 bill...
