U.S. consumer spending on video streaming services drops 25%Wednesday, April 5th, 2023
Consumer spending on video streaming services drops 25% to $69/month from high of $90 a month in 2021
DALLAS — Parks Associates’ latest research shows a significant drop in consumer spending for streaming video services. US internet households report spending $69 per month on OTT services in 3Q 2022, down from $90 in 1Q 2021, although the market remains saturated with 87% of US internet households having at least one streaming service.
Parks Associates will demo its new OTT Video Market Tracker online tool during an industry webinar today, April 5, at 10:30 am CT (11:30 am ET). OTT Video Market Tracker: Insights into the Evolving US Streaming Landscape will include insights into the video streaming market and the latest consumer data on adoption, spending, and the ripple effects to widespread streaming usage. Forty-five percent of US internet households now have five or more OTT services, and their streaming activities influence spending on other services—60% of households that recently upgraded their broadband service report streaming as the reason for the upgrade.
“Consumers are trying new services – they’re hopping in and out based on the season for sports, fresh content offerings, and the deals and bundles offered,” said Elizabeth Parks, President and CMO, Parks Associates. “Currently we see 32 million US internet households hopping around with various services, and retention and churn will continue to challenge the industry.”
Parks Associates has adapted its landmark OTT Video Market Tracker so that clients can easily get updates on market growth, new trends, and profiles of all OTT players. The webinar will preview this new client experience and provide insights into the latest trends and developments, including the increasing prevalence of ad-supported lower-cost tiers and the growth of FAST and AVOD services.
Links: Parks Associates