The streaming industry is entering a turbulent phase marked by heightened consumer scrutiny, plateauing growth, and shifting expectations. New research paints a clear picture: while viewers continue to engage with digital content, their tolerance for rising prices and unoptimized user experiences is rapidly declining. At the same time, emerging technologies like artificial intelligence are gaining traction as viable tools for differentiation and monetization.
According to data collected by market intelligence platform Attest, 36% of consumers in the United States and 35% in the United Kingdom reported having reduced the number of streaming subscriptions they maintain over the past year. This trend signals mounting price sensitivity and a broader reassessment of perceived value. Most households now actively cap their services to two or three platforms, creating a more competitive and high-stakes environment for streamers trying to retain users.
Adding to the challenge, viewers are no longer defaulting to ad-free, premium models. The study found that 40% of U.S. consumers and 38% of U.K. consumers have transitioned from ad-free to ad-supported tiers, indicating a growing willingness to tolerate advertising in exchange for lower monthly fees. This shift suggests that consumers are prioritizing affordability over convenience—an important recalibration in platform pricing strategies.
When asked how much of a price increase they would accept before canceling a subscription, more than half of respondents drew the line at a 20% hike. Beyond that threshold, users signaled a strong intent to reduce or eliminate services altogether, effectively defining the upper limit of price elasticity for the category.
However, the research also points to a potentially game-changing solution: artificial intelligence. A separate Attest report reveals that 45% of respondents in both the U.S. and the U.K. would be more likely to subscribe to a platform that integrates AI features. Even more notably, 57% of consumers said they would be willing to pay an additional $3 to $5 per month for enhanced experiences powered by AI. This includes smarter and more personalized content recommendations, advanced discovery tools, AI-driven remastering of classic content, and natural-language voice search capabilities.
These results indicate that while consumers are cutting back on excess, they are open to paying a premium for innovation that offers tangible value. The appeal of AI is particularly strong among viewers aged 31 to 49—a demographic with significant purchasing power and long-term revenue potential. The findings point to a new strategic imperative: instead of competing on content volume alone, platforms must deliver smarter, more intuitive viewing experiences.
With AI adoption, streaming services can build higher-margin offerings and introduce new tiers that are aligned with user expectations around customization, utility, and user-friendly navigation. This not only opens up room for incremental pricing but also reduces churn by creating deeper engagement through personalization.
The combined research underscores a pivotal moment for the streaming sector. Platforms that fail to adapt to economic realities and evolving consumer preferences risk losing ground in an increasingly fragmented marketplace. Meanwhile, those that double down on innovation—particularly in AI—stand to unlock new paths to profitability and loyalty.
In a maturing market where sheer content volume no longer guarantees growth, success will depend on how effectively services blend technology, personalization, and affordability. The opportunity lies not just in acquiring new subscribers, but in delivering smarter, more engaging experiences that consumers feel are worth keeping—and paying more for.