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
The company is a leader in the streaming market—it launched an OTT (over-the-top) Internet-based streaming service in 2014. According to research firm Parks Associates, the WWE’s service is the fifth...
But below the big three, some new companies are quickly climbing the ranks, according to research by market tracker Parks Associates. The fourth-largest Internet video service ranked by number of s...
With many media and content companies jumping on the streaming TV bandwagon, the marketplace is becoming increasingly fragmented, and it’s creating even more competition for high-quality content to ke...
In last few years, the conversation around cutting the cord has gained considerable traction in the U.S. Cord-cutting refers to the pattern of viewers canceling their DTH (direct-to-home) or cable TV...
