30% of consumers cite cutting household expenses as the top reason for canceling a streaming service

Parks Associates today announced new findings from Streaming Competition and Profitability: Pricing Models & Retention Strategies revealing that affordability has overtaken content availability as the dominant reason consumers cancel video services. In 2025, 30% of consumers cite cutting household expenses as the top reason for canceling a streaming service, up from 26% in 2020.

While exclusive content remains an important acquisition driver, it is no longer sufficient for retention. Parks Associates’ quarterly surveys of 8,000 US internet households find that nearly one in four subscribers cancel after finishing the show they were watching, underscoring the rise of rotational viewing behavior in a saturated streaming environment.

Ad-supported tiers have emerged as the strongest retention lever. The study finds that lower-cost plans with advertising are the top incentive for retaining or winning back subscribers, outpacing flexibility features such as pause options or loyalty pricing. Ads, however, remain the single biggest drag on satisfaction, creating a delicate balance between reach and loyalty.

“Consumers are no longer choosing between services, they’re choosing between price points,” said Michael Goodman, Director, Entertainment Research, 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.”

Other data highlights:

• 91% of US internet households subscribe to at least one SVOD service, confirming that streaming has shifted from an emerging category to a baseline household expense.
• The average SVOD household now maintains 5.8 subscriptions, up from 5.5 in 2021, while average spend per service continues to decline, signaling a shift toward portfolio optimization rather than expansion.
• 70% of viewers say the same ads repeat too often, making repetition the leading frustration with ad-supported streaming services.
• More than half of new streaming subscriptions are activated either through device platforms or direct-to-consumer sign-ups.

This research highlights that churn is often cyclical rather than permanent, reinforcing the importance of flexible pricing, ad-supported options, and clear value messaging to extend subscriber lifetimes.  Parks Associates’ research tracks more than a decade of consumer behavior across subscription, ad-supported, and transactional video models, providing strategic guidance for media companies navigating profitability in a mature, highly competitive market.

Michael Goodman, director of entertainment research at Parks Associates, is presenting findings from Parks Associates’ “S.O.S. State of Streaming” report on February 12, released in partnership with TheDesk.net and OTT.x. The research is featured by Philo, InterDigital, Skreens, Adeia, Broadpeak, and Sling TV. 

For more information on the research or to schedule an interview with an analyst, contact Mindi Sue Sternblitz-Rubenstein, 972-490-1113.

About Parks Associates

Parks Associates helps companies identify new opportunities, refine strategy, and accelerate growth in connected technology markets through data-driven insights and industry expertise. With more than 40 years of experience, the firm delivers proprietary consumer and industry research, market forecasts, and strategic analysis that guide business decisions across personal, connected home, small business, and commercial technology ecosystems. Parks Associates supports clients in navigating evolving markets including AI, security, smart home, broadband, entertainment, energy, multifamily, smart buildings, and connected health.

The firm also fosters industry growth and collaboration by convening thousands of leaders each year through its flagship executive conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video.  Learn more at https://www.parksassociates.com.

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