Parks Associates’ latest research showed that consumer habits continue to shift around video viewing - now 71% of U.S. internet households use an SVOD service, 42% use an AVOD and/or FAST service, and 18% use a TVOD service. The research firm presented these stats in the recent virtual session "State of Streaming Services and Future of Entertainment.”
“Competition is fierce, and the pressure is on to offer unique, immersive content and to have that content available on multiple platforms,” said Elizabeth Parks, President and CMO, Parks Associates. “Consumers today are fatigued by the disjointed surplus of streaming options available. Now, 46% of households have five or more streaming services; average spending has dropped from $80 a month six months ago to $63 a month.”
“There is a divide in household sentiment towards the cost of streaming services,” Parks added. “About an equal number of households agree as disagree that they are spending too much on streaming services. Those who agree they spend too much are likely entertainment enthusiasts who subscribe to and use more services. However, these households may look to cut back soon or embrace more services with advertisements as prices continue to climb higher.”
The company had also reported, in a white paper produced in partnership with JW Player (JWP), that 67% of consumers watch social video, 50% watch free ad-supported video, one-third watch pay TV, and 14% use an antenna to watch over-the-air broadcast. Further, 65% of internet households report watching video on a mobile phone, a significant increase from ten years ago, when just 30% regularly watched video on a mobile phone.
“The video streaming business is in a transformative stage,” said James Burt, SVP Broadcast Solutions for JWP. “It's full of requirements that change to align with shifts in viewer consumption trends. Streaming management is also technically complex, with broadcasters struggling to balance operational efficiencies with innovation and growth. Yet there are more viewers using digital platforms to consume content than ever before. Streaming companies must review their technology, operations, and productivity and make adjustments to create economies of scale and improve ROI,” he concluded.
As the streaming landscape continues to evolve, it is clear that both consumers and service providers are grappling with a rapidly shifting environment. With more viewers than ever relying on digital platforms for their content consumption, companies must stay nimble, balancing consumer demand for affordable, diverse content with the need for operational efficiency. As spending trends fluctuate and competition intensifies, the future of streaming will likely see further consolidation and innovation as providers strive to offer compelling, seamless experiences across multiple platforms. The ongoing transformation will be driven by how well these services adapt to both technological demands and the evolving preferences of their audiences.
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