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
Parks Associates’ new whitepaper “Smart Locks and Access Control Supply Chain: Scaling Innovation,” developed in partnership with PassiveBolt, highlights the rise in demand for secured smart spaces, t...
Parks Associates research shows 43% of U.S. MDU residents report using smart home devices. Here’s why IoT products are in-demand by both residents and property managers. MDU residents making use of...
NEW PARKS ASSOCIATES WHITEPAPER ADDRESSES SECURITY SYSTEM INNOVATIONS ENABLED BY SMART HOME CONNECTIVITY. Parks Associates, an internationally recognized market research and consulting company, has...
Parks Associates research reveals that most owners report experiencing a false alarm in the past 12 months. Parks Associates research reports that siren, phone call, and in-app alerts are the most...
