Parks data shows marked decline in US streamer revenues

New research from research consultancy Parks Associates shows a significant drop in US consumer spending for streaming video services between 2021 and 2022. According to the company’s data, US internet households spent $69 per month on OTT services in 3Q 2022, down from $90 in 1Q 2021 – a fall of around 23%.

Elizabeth Parks

In a report entitled OTT Video Tracker: Insights into the evolving US streaming landscape, Parks said that streamer penetration in the US remains high, with 87% of US internet households having at least one streaming service, and 45% having five or more. However the loss of revenues suggests that consumers are either dropping their least favourite services or becoming more tactical about their subscriptions.

Elizabeth Parks, president and CMO of Parks Associates, said: “Consumers are trying new services – they’re hopping in and out based on the season for sports, fresh content, and the deals and bundles offered. Currently we see 32 million homes hopping around services; and retention and churn will continue to challenge the industry.”

Parks’ figures help explain why leading streamers have pivoted in recent months from a growth-led strategy to a more profit-oriented mindset – with numerous shows being axed as platforms seeking to control costs. While it is likely that the fall in revenues is partly a reaction to the current gloomy economic climate, it also suggests that consumers are getting smarter about managing their entertainment expenditure.