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
Networked surveillance cameras are leading the adoption of smart-home technology, Parks Associates said in releasing consumer-survey results during ISC West. Nine percent of U.S. broadband househol...
The number of broadband-connected households with a game console will fall to less than 50 percent by 2019 from today's 58 percent, thanks to the growth of gaming options on platforms such as smart TV...
Parks Associates has identified more than 15 smart-home platform players in this growing, yet competitive, market. These platforms can be segmented based on the extent of their openness through APIs a...
Smart-home products are rolling out to the masses as consumers look for ways to simplify their daily lives. According to a recent survey from Parks Associates, more than 40 percent of U.S. broadban...
