U.S. average spending on streaming drops from $90 to $64 per month

Tuesday, June 25th, 2024 
Parks Associates logo

Parks Associates: Average Spending on Streaming Services Drops from $90 to $64 Per Month

  • Parks Associates presents research at StreamTV Show

DALLAS — This week, Parks Associates will share new research at the StreamTV Show in Denver, CO, showing shifts in demand for streaming video services, including a significant drop in spending. The firm’s latest research from Video Services Dashboard reports a dramatic 30% drop in spending for streaming SVOD services, with the average US internet household spending about $63 per month on OTT SVOD services, down from $90 in 2021.

SVOD Service Stacking - Number of Streaming Video Services per Household - U.S. - 1Q-2023, 3Q-2023, 1Q-2024

“Consumers are spending less, but rather than go without, many are using ad-based alternatives to save on costs,” said Sarah Lee, Research Analyst, Parks Associates. “A service needs to provide unique and ongoing value if it is to charge a premium.”

Households are now stacking fewer streaming services—in Q1 2024, 20% of US internet households report paying 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 cancelled a service in the past 12 months cite a need to cut household expenses as the reason.

“All categories of household services face challenges, as consumers reevaluate their spending and subscriptions,” said Elizabeth Parks, President and CMO, Parks Associates. “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.”

Links: Parks Associates