Cost-Saving Takes Over as Number One Reason for Churn

In Parks Associates’ latest findings, 30 percent of U.S. consumers reported cutting household expenses as the top reason for canceling a streaming service subscription, overtaking content availability as the dominant driver.

“Consumers are no longer choosing between services, they’re choosing between price points,” noted Michael Goodman, director of entertainment research at Parks Associates. “Platforms that treat affordability as a retention strategy, not a discount tactic, are far better positioned to manage churn in this mature market.”

Ad-supported tiers have emerged as the strongest driver of retention, with lower-cost plans as the top incentive for retaining or winning back subscribers. That said, ads are also the single biggest damper on satisfaction. 70 percent of viewers say the same ads repeat too often, making repetition the leading frustration with AVODs.

Meanwhile, 91 percent of U.S. internet households subscribe to at least one SVOD service. The average SVOD household maintains 5.8 subscriptions, up from 5.5 in 2021.