Parks Associates Research: Streaming Competition and Profitability: Pricing Models & Retention Strategies Shows Cost Savings, Not Content, Is the Primary Driver of Streaming Churn

30% of consumers cite cutting household expenses as the top reason for canceling a streaming service

PLANO, Texas, Feb. 10, 2026 /PRNewswire/ -- Parks Associates today announced new findings from Streaming Competition and Profitability: Pricing Models & Retention Strategies revealing that affordability has overtaken content availability as the dominant reason consumers cancel video services. In 2025, 30% of consumers cite cutting household expenses as the top reason for canceling a streaming service, up from 26% 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 behavior 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," said 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% 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 optimization rather than expansion.
• 70% 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. Parks Associates' research tracks more than a decade of consumer behavior across subscription, ad-supported, and transactional video models, providing strategic guidance for media companies navigating profitability in a mature, highly competitive market.

Michael Goodman, director of entertainment research at Parks Associates, is presenting findings from Parks Associates' "S.O.S. State of Streaming" report on February 12, released in partnership with TheDesk.net and OTT.x. The research is featured by Philo, InterDigital, Skreens, Adeia, Broadpeak, and Sling TV. 

For more information on the research or to schedule an interview with an analyst, contact Mindi Sue Sternblitz-Rubenstein, 972-490-1113.

About Parks Associates

Parks Associates is a global research, consulting, and marketing firm with 40 years of experience delivering proprietary consumer data and industry insights for businesses. The firm produces market research reports, forecasts, surveys, and competitive business intelligence on connected consumer, small business, and commercial technologies and related business solutions. Parks Associates provides custom research, strategic consulting, and forward-looking analysis across connected home, small business, and commercial markets, including security, smart home, broadband, entertainment, energy, multifamily, smart buildings, connected health, and emerging AI-driven technologies.

Parks Associates supports industry growth through proprietary research, consulting, and executive networking and convenes thousands of leaders each year through its flagship conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at www.parksassociates.com.

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Media Contact:
Mindi Sue Sternblitz-Rubenstein
Parks Associates
972.490.1113
[email protected] 

SOURCE Parks Associates