Parks Associates has published findings from Streaming Competition and Profitability: Pricing Models & Retention Strategies report revealing that affordability has overtaken content availability as the dominant reason consumers cancel video services. In 2025, 30 per cent of US consumers cite cutting household expenses as the top reason for canceling a streaming service, up from 26 per cent in 2020.

While exclusive content remains an important acquisition driver, it is no longer sufficient for retention. Parks Associates’ quarterly surveys of 8,000 US internet households find that nearly one in four subscribers cancel after finishing the show they were watching, underscoring the rise of rotational viewing behaviour in a saturated streaming environment.

Ad-supported tiers have emerged as the strongest retention lever. The study finds that lower-cost plans with advertising are the top incentive for retaining or winning back subscribers, outpacing flexibility features such as pause options or loyalty pricing. Ads, however, remain the single biggest drag on satisfaction, creating a delicate balance between reach and loyalty.

“Consumers are no longer choosing between services, they’re choosing between price points,” commented Michael Goodman, Director, Entertainment Research, Parks Associates. “Platforms that treat affordability as a retention strategy, not a discount tactic, are far better positioned to manage churn in this mature market.”

Other data highlights:

• 91 per cent of US internet households subscribe to at least one SVoD service, confirming that streaming has shifted from an emerging category to a baseline household expense.
• The average SVoD household now maintains 5.8 subscriptions, up from 5.5 in 2021, while average spend per service continues to decline, signaling a shift toward portfolio optimisation rather than expansion.
• 70 per cent of viewers say the same ads repeat too often, making repetition the leading frustration with ad-supported streaming services.
• More than half of new streaming subscriptions are activated either through device platforms or direct-to-consumer sign-ups.

This research highlights that churn is often cyclical rather than permanent, reinforcing the importance of flexible pricing, ad-supported options, and clear value messaging to extend subscriber lifetimes.

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Categories: Consumer Behaviour, Headline, Premium, Research, VOD

Tags: Churn, Parks Associates, streaming, usa