Household spending on streaming services dropped to $73 a month, with the new data from Parks Associates and Adeia suggesting that average spending on these subscription services is down from $90 a month in 2021.
In 2023, a number of streaming services have already increased prices. It is not only live TV streaming services that have gone up in price, but also a number of on-demand subscription services as well, including Paramount Plus, Peacock, Max, and Shudder, among others. Not to mention, we already have confirmation that Disney Plus, ESPN Plus, and basic Hulu are all also going up in price next month.
With prices continually rising, it makes senes that homes might be more cautious on how much they spend on streaming services and that seems to be the takeaway from the latest research by Parks Associates and Adeia. According to their findings, internet household spending on streaming subscription services declined 25% to $73 a month versus $90 in 2021.
The results of the research also suggested that almost one-third (31%) of households were using free ad-supported streaming services by the end of 2022.
“Concerns around inflation and streaming services price hikes are driving consumers to dynamically choose the streaming services that they subscribe to each month. As a result, AVOD services have risen in popularity, adding to the fragmentation of target audiences for advertisers and brands,” said Jean-Yves Couleaud, Senior Director of Advanced R&D for Adeia.
For context, Parks Associates released a very similar report in April of this year, again confirming that average household spending was down when compared to 2021. However, that report suggested that spending had dropped to $69 a month. In this sense, the latest findings would seem to suggest that there was actually a slight increase in household spending on streaming services towards the end of last year.
Either way, the clear suggestion here is that spending on subscription video services remains significantly down compared to 2021 in general, while free, ad-supported streaming services continue to remain a popular alternative.