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Parks: 89% of U.S. Households Have a Streaming Video Subscription

Parks Associates research sees an uptick of subscription streaming services among U.S. households, led by streaming video, retail memberships, and streaming audio, while 20% of households have a gaming subscription, outpacing gym memberships.

Citing data from a new consumer study of 8,000 U.S. internet households, Parks found that 89% of households have a streaming video service, and 32% subscribe to a streaming audio service. One in five internet households subscribe to a gaming service, while 16% have a gym membership.

“The evolution of hardware to a service model and demand to drive engagement and loyalty for brands through apps are driving the rise of subscription services,” Jennifer Kent, VP of research for Parks Associates, said in a statement.

Kent said that Spotify’s premium subscriber adoption is as high as that of Warner Bros. Discovery’s Discovery+ platform, which she said is the ninth-biggest video subscription service.

While many subscription services see adoption drop-offs after age 45, Kent believes that households can absorb the high prices for gaming and fitness services, appearing to prioritize convenience over the cost of streaming services.

Categories that provide entertainment (music, gaming) and convenience (child/baby, meal service) fare particularly well in terms of customer loyalty, according to Parks. The Dallas-based company believes that internet and traditional pay-TV providers, which traditionally have subpar consumer satisfaction scores, can benefit from partnering with — or bundling in — streaming services that garner higher customer satisfaction and loyalty.

“Competitive pressure will force market challengers to forge stronger ties, [such as] Walmart+ and Paramount+,” Kent said. “Subscription bundlers should seek offerings that span entertainment, productivity, and convenience.”

From the article, "Parks: 89% of U.S. Households Have a Streaming Video Subscription" by Jennifer Kent

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