Parks Associates June 25 announced that new data found a 30% drop in spending for streaming SVOD services, with the average U.S. internet household spending about $63 per month on streaming video services, down from $90 in 2021.
“Consumers are spending less … many are using [lower-cost] ad-based streaming alternatives to save on costs,” analyst Sarah Lee said in a statement.
Parks said that in the first quarter, 20% of U.S. internet households paid for nine or more services, versus 29% in Q3 2023. The overall average number of streaming video service subscriptions per household has dropped below five, and 32% of households that canceled a service in the past 12 months cited a need to cut household expenses as the reason.
“All categories of household services face challenges, as consumers reevaluate their spending and subscriptions,” analyst Elizabeth Parks said in a statement. “A focus on value and education, the user interface, and the customer experience is what will drive the next generation of services in the home.”
From the article, "Parks: Household Average SVOD Spending Drops from $90 to $64 Monthly" by Erik Gruenwedel
Perhaps the bigger surprise is that more haven’t exited the market — yet. “We’re finding that there are many services that are … getting enough subscribers just to be able to be sustainable,” Brett Sa...
“While pay TV penetration has declined among U.S. broadband households, adoption has remained steady among Spanish-preferred and bilingual households over the past few years,” Brett Sappington, Parks...
According to research from Parks Associates from this past May, Roku led all of its competitors in sales from first quarter 2015 to first quarter 2016, with its set-top boxes accounting for 30% of the...
While the home is shaping up to be the battleground, cable operators and other service providers are jostling to position themselves as the aggregation and management point of this emerging class of s...
