#USA #Plano #Parks Associates #Streaming Services #subscription video

Insights into Subscription Video Revenue from 2025 to 2030

The U.S. subscription TV and video market is on a steady path of growth according to a recent report released by Parks Associates. Projected figures show that total subscription revenue will increase from $186.5 billion in 2025 to $190.7 billion by 2030. This forecast relies on a detailed analysis of consumer habits, market trends, and competitive circumstances shaping the landscape of on-demand viewing.

Overview of Market Dynamics

The report outlines a gradual yet consistent rise in revenue, indicating that the user base for subscription services will grow from 719 million households in 2025 to 765 million by 2030. This suggests a mature market, with growth driven primarily by consumers opting for diverse service packages rather than merely increasing the number of subscribers.

Michael Goodman, Research Director at Parks Associates, points out that the dynamics of growth are shifting. He emphasizes, "As the U.S. video market matures, growth is no longer solely about adding new households—it's about optimizing value." This insight highlights a significant trend where households are likely to add multiple subscription services, providing a broader array of content options.

Changes in Consumer Spending

Interestingly, the average amount spent monthly on subscription TV and video is expected to peak at $122.74 in 2028 before slightly declining to $122.04 by 2030. This increase reflects a consumer willingness to invest in premium content and flexible viewing options, even amid rising prices. As consumers embrace multifaceted service stacks that often include ad-supported tiers, the overall marketplace becomes not only competitive but also increasingly tailored to viewer preferences.

Ad-Supported Tiers on the Rise

The growth of ad-supported tiers is particularly notable, as it reflects a shift in consumer behavior toward more cost-effective viewing options. Households are starting to prioritize flexibility and value, willing to watch advertisements in exchange for lower subscription fees. This trend signifies a vital adaptation of traditional service providers to sustain consumer engagement in a highly competitive environment.

Challenges for Traditional Pay-TV

At the same time, traditional pay-TV services continue experiencing revenue declines as viewers lean more toward younger and fresher streaming platforms. Goodman explains the necessity for pay-TV services to reinvent themselves, emphasizing a transition to becoming smaller, specialized entities that deliver tailored content. As the landscape evolves, pay-TV remains a critical, albeit contracting, niche within the broader industry.

Key Findings and Strategic Implications

This analysis from Parks Associates combines proprietary research and advanced modeling techniques, yielding projections about both subscriber counts and revenue growth that account for foundational changes in consumer behavior and service strategies. Key highlights from the report include:

• - Trends in overall U.S. TV and streaming video subscriptions
• - Adoption rates of subscription video on demand (SVOD) and service stacking
• - Revenue growth forecasts associated with ad-supported tiers
• - Projected declines in pay-TV subscribers by provider
• - Changing consumer value perceptions and market saturation factors

These findings underscore the critical factors streaming services must address in order to maintain their competitive advantage moving forward.

Conclusion

Parks Associates' findings reveal a robust and transforming marketplace that will continue to adapt as consumer preferences evolve. The increased willingness to spend on diversified services suggests a hopeful landscape for content providers, while traditional pay-TV faces an uphill battle against agility in the streaming sector.

For more insights and a detailed examination of the report, interested parties can reach out to Parks Associates and schedule an interview with one of their analysts. Parks Associates remains committed to providing up-to-date research on the trends shaping modern viewing habits.

Media Contact:
Mindi Sue Sternblitz-Rubenstein
Parks Associates
972-490-1113
[email protected]

About Parks Associates

Founded in 1986, Parks Associates specializes in emerging consumer technology products and services, providing essential market research driven by proprietary methodologies.