Parks Associates: 56 million (46%) US Internet Households are Cord Cutters, and 12% are Cord Nevers
Video Services Dashboard highlights competition and shifts to ad-based tiers, as 59% of subscriptions across the eight leading SVOD services are basic tier subscriptions with ads
DALLAS, Feb. 4, 2025 /PRNewswire/ -- Parks Associates' latest research from its Video Services Consumer Insights Dashboard reports 56 million (46%) US internet households are Cord Cutters, which illustrates the dominance of streaming video services. Additionally, 12% of US internet households are Cord Nevers, who have never subscribed to any sort of traditional pay TV.
The Dashboard research service tracks adoption trends and shifts in the video services market, including households who are disconnecting in favor of free-to-air broadcasts or online video services.
Service providers are adapting by offering competitive pricing, bundling options, and hybrid monetization strategies. The rise of ad-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST) services shows the demand for lower-cost alternatives, and subscription-based platforms continue to experiment with tiered pricing and content exclusivity to retain customers.
"Cord Nevers represent a unique opportunity for streaming providers," said Jennifer Kent, Vice President, Research, Parks Associates. "By definition, this segment of the market has not paid for traditional pay TV, but streaming services have found a way to monetize a segment that has not previously valued subscription video or has grown up in a streaming-first market, with different conceptions of what subscription video should be."
For leading streaming services, many consumers prefer the basic tier with ads over the more expensive premium tier with no ads. Parks Associates research shows, as of Q3 2024, 59% of subscriptions across the eight leading SVOD services are basic tier with ads subscriptions:
- MAX (formerly HBO)
- Netflix
- Disney+
- Discovery+
- Paramount+
- Prime Video
- Hulu
- Peacock
To achieve profitability and strike a balance for consumers, many of the most popular services now operate under a hybrid model, offering both ad-free and ad-supported plans to viewers. Ad-based tiers are cheaper for consumers and more profitable for businesses, making them a win-win for both parties.
"Consumers are worn down from continued spending increases in streaming, while years of high inflation are driving consumers to pare down accordingly," Kent said. "This only intensifies the competition among streaming vendors and will fuel more growth of subscription tiers with ads and free ad-based services."
The Video Services Consumer Insights Dashboard provides critical resources and tracking information to organizations that provide video services to the home. To schedule an interview with an analyst or to request specific data, please contact Mindi Sue Sternblitz-Rubenstein, mindi.sue@parksassociates.com, 972-490-1113.
About Parks Associates
Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.
The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.
Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
Mindi Sue Sternblitz-Rubenstein
Parks Associates
972.490.1113
389722@email4pr.com
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SOURCE Parks Associates