Parks: Consumer SVOD Spending Slips 30 Percent

The average U.S. internet home spends about $63 per month on SVOD services, down from $90 back in 2021, according to a new study from Parks Associates.

“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.”

Homes are also stacking fewer services; the percentage of households paying for nine or more platforms has dropped from 29 percent in Q3 2023 to 20 percent. Further, the average number of services subscribed to has fallen below five. In addition, 32 percent of homes that canceled a subscription in the last 12 months cited cost-cutting efforts as a factor.

“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.”