Average Spending on Streaming Services Drops in the US

Parks Associates research reveals a dramatic 30% drop in spending for streaming SVOD services. According to the report, the average US internet household spent about $63 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,” said Sarah Lee, Research Analyst at 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 1Q24, 20% of US internet households report paying for nine or more services, versus 29% in 3Q23. The overall average number of streaming video service subscriptions per household has dropped below five, and 32% of households that canceled 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 of 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.”