Research: US SVoD spend drops
June 26, 2024
Research from Parks Associates shows shifts in demand for streaming video services in the US, including a significant drop in spending. The firm’s latest research from its Video Services Dashboard reports a significant 30 per cent drop in spending for streaming SVoD services, with the average US internet household spending about $63 (€58.91) per month on OTT SVoD services, down from $90 in 2021.
“Consumers are spending less, but rather than go without, many are using ad-based alternatives to save on costs,” commented 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 per cent of US internet households report paying for nine or more services, versus 29 per cent in Q3 2023. The overall average number of streaming video service subscriptions per household has dropped below five, and 32 per cent 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,” added 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.”