Parks Associates’ latest research from its Video Services Consumer Insights Dashboard reports that 56 million (46 per cent) of US internet households are cord cutters, which highlights the dominance of streaming video services.
“Cord-nevers represent a unique opportunity for streaming providers,” said Jennifer Kent, Vice President, Research, Parks Associates. “By definition, this segment of the market has not paid for traditional pay-TV, but streaming services have found a way to monetise a segment that has not previously valued subscription video or has grown up in a streaming-first market, with different conceptions of what subscription video should be.”
For leading streaming services, many consumers prefer the basic tier with ads over the more expensive premium tier with no ads. Parks Associates’ research shows, as of Q3 2024, 59 per cent of subscriptions across the eight leading SVoD services are basic tier with ads subscriptions:
- Max
- Netflix
- Disney+
- Discovery+
- Paramount+
- Prime Video
- Hulu
- Peacock
“Consumers are worn down from continued spending increases in streaming, while years of high inflation are driving consumers to pare down accordingly,” Kent added. “This only intensifies the competition among streaming vendors and will fuel more growth of subscription tiers with ads and free ad-based services.”
From the Advanced Television article, "Research: 56m US households are cord-cutters"
