Shifts in U.S. Streaming Trends: 46% of Households Are Cord Cutters
Recent data from Parks Associates highlights a significant trend in the U.S. media consumption landscape, with approximately 56 million households—46% of U.S. internet users—having opted to cut the cord on traditional pay-TV services. This shift not only underscores the growing dominance of streaming platforms but also introduces a new category of consumers known as 'Cord Nevers.' These individuals have never subscribed to traditional cable or satellite TV at all, with their preferences gravitating strongly towards online video solutions.
The rise of cord-cutting reflects broader changes in consumer behavior, largely driven by the emergence of affordable, ad-supported streaming options. Parks Associates notes that 12% of internet households fall into the Cord Never category, entirely avoiding traditional TV. Many consumers now favor basic subscription plans that include advertisements over pricier ad-free subscriptions. As of the third quarter of 2024, 59% of subscriptions across major streaming platforms like Netflix, Disney+, and Hulu were for basic tiers that incorporate ads.
To adapt to this evolving market, content providers are employing various strategies, such as competitive pricing and bundling options. The demand for more economical viewing experiences has propelled the popularity of advertising-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST) services. Although subscription services continue to explore tiered pricing models, many platforms acknowledge that a hybrid approach—offering both ad-free and ad-supported options—might be the best route for profitability.
Jennifer Kent, the Vice President of Research at Parks Associates, emphasizes that the surge in subscriptions for ad-supported tiers provides a dual benefit: it reduces costs for consumers while also increasing revenue opportunities for service providers. In a market where many viewers are feeling the financial strain from rising costs associated with streaming services, this balance becomes increasingly important. The economic context—marked by heightened inflation—has led consumers to reevaluate their entertainment budgets, further intensifying competition among providers.
This shift also presents an opportunity for streaming platforms to engage with the Cord Never audience effectively. As these consumers have no historical relationship with traditional pay-TV models, service providers can introduce innovative solutions that align with their preferences for streaming content. The challenge lies in crafting offers that break through the traditional notions surrounding subscription video, tailoring them to a demographic that has only known a streaming-first environment.
Given these trends, the Video Services Consumer Insights Dashboard will continue to provide valuable insights for stakeholders in the video services industry, helping them navigate this competitive landscape. The full scope of the research demonstrates a transformative moment in how consumers engage with content, as convenient access to diverse, affordable viewing options reshapes the industry.
Parks Associates is a versatile research firm specializing in analyzing emerging consumer technology markets. Founded in 1986, the company utilizes robust methodologies to provide comprehensive insights into various domains, including streaming video, broadband services, and smart home technologies. Through their annual events and webinars, they convene industry leaders to discuss trends shaping the future of video.
As the battle for streaming subscribers intensifies, the ongoing changes in consumer preferences and viewing habits will likely drive further innovations in service offerings and pricing structures, ensuring that both consumers and businesses find viable paths forward in this ever-evolving landscape.
The rise of cord-cutting reflects broader changes in consumer behavior, largely driven by the emergence of affordable, ad-supported streaming options. Parks Associates notes that 12% of internet households fall into the Cord Never category, entirely avoiding traditional TV. Many consumers now favor basic subscription plans that include advertisements over pricier ad-free subscriptions. As of the third quarter of 2024, 59% of subscriptions across major streaming platforms like Netflix, Disney+, and Hulu were for basic tiers that incorporate ads.
To adapt to this evolving market, content providers are employing various strategies, such as competitive pricing and bundling options. The demand for more economical viewing experiences has propelled the popularity of advertising-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST) services. Although subscription services continue to explore tiered pricing models, many platforms acknowledge that a hybrid approach—offering both ad-free and ad-supported options—might be the best route for profitability.
Jennifer Kent, the Vice President of Research at Parks Associates, emphasizes that the surge in subscriptions for ad-supported tiers provides a dual benefit: it reduces costs for consumers while also increasing revenue opportunities for service providers. In a market where many viewers are feeling the financial strain from rising costs associated with streaming services, this balance becomes increasingly important. The economic context—marked by heightened inflation—has led consumers to reevaluate their entertainment budgets, further intensifying competition among providers.
This shift also presents an opportunity for streaming platforms to engage with the Cord Never audience effectively. As these consumers have no historical relationship with traditional pay-TV models, service providers can introduce innovative solutions that align with their preferences for streaming content. The challenge lies in crafting offers that break through the traditional notions surrounding subscription video, tailoring them to a demographic that has only known a streaming-first environment.
Given these trends, the Video Services Consumer Insights Dashboard will continue to provide valuable insights for stakeholders in the video services industry, helping them navigate this competitive landscape. The full scope of the research demonstrates a transformative moment in how consumers engage with content, as convenient access to diverse, affordable viewing options reshapes the industry.
Parks Associates is a versatile research firm specializing in analyzing emerging consumer technology markets. Founded in 1986, the company utilizes robust methodologies to provide comprehensive insights into various domains, including streaming video, broadband services, and smart home technologies. Through their annual events and webinars, they convene industry leaders to discuss trends shaping the future of video.
As the battle for streaming subscribers intensifies, the ongoing changes in consumer preferences and viewing habits will likely drive further innovations in service offerings and pricing structures, ensuring that both consumers and businesses find viable paths forward in this ever-evolving landscape.
Topics Entertainment & Media）
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