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You Can Save Over $350 a Year on Streaming Services If You Don’t Mind Commercials

Quite a lot, according to new data from Parks Associates.

The average streaming household, which subscribes to 5.6 platforms, according to the research firm, could save $366 a year on average by switching to ad-based tiers.

“The move to ad-based services provides more options for consumers, especially as they are seeking a balance between costs and the desire for multiple content options,” Jennifer Kent, Parks Associates vice president of research, said in a statement. “Not everyone’s favorite streaming service offers a cheaper ad-based service tier yet, and many subscribers will choose a mix of ad-based and premium options, depending on household preferences.”

Earlier this month, during the firm’s presentation of its State of the Market: Streaming Video Services report, Parks Associates said in the past month, 31% of U.S. households reported watching an ad-supported video on demand or a free ad-supported streaming service – a 13% increase from 2018. In addition, 41 million U.S. households are expected to watch ad-based over-the-top (OTT) video services like Tubi, Freevee, and Pluto TV. Last December, the firm said streaming subscriptions has declined 25% from $90 in 2021 to $73 in 2023, as viewers migrated to free, ad-supported services to save money.

Kent’s prediction that subscribers will choose a mix of ad-based and premium options further supports the firm’s previous notion that platform consolidation could be a potential solution for companies, viewers, and advertisers.

From the article, "You Can Save Over $350 a Year on Streaming Services If You Don’t Mind Commercials" by Shelby Brown

Previously In The News

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AT&T-Time Warner Deal: A Good Merger In The New Media Era Or A Bad Remake?

Pay-TV operators are seeing a "slow erosion of the core business," analyst Brett Sappington at Parks Associates said. "After years of attempts to be more than just a 'dumb pipe,' pay-TV operators h...

Pay TV Companies Are Losing Ground To OTA

The latest Parks Associates study is out, and it has more bad news for traditional pay TV companies. Once again, satellite and cable companies are seeing losses. And it’s not just streaming services t...

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The new Hulu service is an attempt by its traditional entertainment company owners to secure their footing in television’s digital future, where streaming has become the norm and competition from deep...

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