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
Amazon also offers transactional (both purchase and rental) and subscription streaming through Amazon Prime Video, continuing to forge partnerships with cablers such as Cox, which added the service to...
Most consumers haven't caught IoT fever yet. "New research from Parks Associates indicates that just 36% of US broadband households have one smart home device, a percentage that decreases if all house...
Parks Associates, a market intelligence and consulting company, yesterday released research showing that over 50% of U.S. broadband households stream content on TV screens. “For years, the televisi...
The smart lighting category is growing steadily and has potential for acceleration with solutions that deliver on the core value propositions of convenience, comfort, energy management, and automation...
