Internet Homes in the U.S.: Approximately Half Have Now Switched to Clarify Cable Services
The latest research from Parks Associates, a leading industry analyst firm, sheds light on the evolving trends in the video services market in the United States. The findings, presented through the Video Services Consumer Insights Dashboard, reveal significant shifts in cord cutting and streaming services.
**Cord Cutting Continues to Rise**
More consumers are ditching traditional pay TV subscriptions in favour of streaming options, reflecting a change in video consumption habits. This trend, known as cord cutting, is a key area of focus for the research.
**Streaming Service Proliferation**
The market is witnessing a surge in streaming video services, including both subscription-based (SVOD) and ad-supported (AVOD) platforms. Consumers are increasingly subscribing to multiple streaming services to access a diverse range of content.
**Bundling and Aggregation**
There is a growing trend toward service bundling or aggregation offerings to simplify consumer choices and provide value, in response to subscription fatigue from managing multiple standalone services.
**Device Diversity and Smart Home Integration**
Streaming is expanding beyond TVs to a wide array of smart devices integrated within connected home ecosystems, supporting personalized and convenient viewing experiences.
**Content and Pricing Strategies**
Services are focusing on exclusive content, live events, and flexible pricing or ad-supported tiers to attract and retain subscribers. The rise of ad-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST) services indicates a demand for lower-cost alternatives.
Jennifer Kent, Vice President of Research at Parks Associates, notes that "cord nevers" represent a unique opportunity for streaming providers. These are households that have never subscribed to traditional pay TV services, and their preferences and habits are shaping the future of the industry.
The research service focuses on households disconnecting from traditional pay TV in favour of free-to-air broadcasts or online video services. According to the research, 12% of U.S. internet households are "cord nevers."
Interestingly, 56 million U.S. internet households are identified as "cord cutters." Jennifer Kent attributes the growth in subscription tiers with ads and free ad-based services to consumer fatigue caused by high inflation, leading to a shift towards more affordable options.
The most popular streaming services now operate under a hybrid model, offering both ad-free and ad-supported plans. Subscription-based platforms are experimenting with tiered pricing and content exclusivity to retain customers. Ad-based tiers are cheaper for consumers and more profitable for businesses, making them an attractive option in the current economic climate.
This shift towards ad-supported streaming services is expected to fuel more growth among streaming providers. As of Q3 2024, 59% of subscriptions across the eight leading SVOD services are for the basic tier with ads.
The competition among streaming vendors is intensifying due to consumers paring down their spending. Parks Associates offers ongoing tracking through its Streaming Video Tracker and Video Services Dashboard research products for in-depth metrics and segmented analysis.
[1] Parks Associates, "Streaming Video Tracker", [Accessed 2025-05-15] [2] Parks Associates, "Video Services Dashboard", [Accessed 2025-05-15] [3] Parks Associates, "Video Services Consumer Insights Dashboard", [Accessed 2025-05-15]
- The surge in streaming services, driven by both subscription-based (SVOD) and ad-supported (AVOD) platforms, is a significant shift inspired by the rising trend of cord cutting.
- Technology advancements in media have facilitated the expansion of streaming content, allowing viewers to access their favorite videos on various devices, including 8K smart TVs and smartphones.
- To attract and retain subscribers, streaming providers are focusing on offering exclusive content, live events, and flexible pricing or ad-supported tiers, which aligns with the growing demand for lower-cost alternatives.
- Jennifer Kent, Vice President of Research at Parks Associates, points out that "cord nevers" are a unique opportunity for streaming providers, as their habits and preferences shape the future of the industry.
- In the evolving landscape of entertainment technology, streaming services are capitalizing on content and pricing strategies, with a considerable portion of subscriptions now opting for the basic ad-supported tier.
