According to data from Parks Associates, 30% of U.S. consumers cite cost-cutting as the primary reason for canceling a streaming subscription.
Price has now overtaken content availability as the leading driver of churn. Lower-priced tiers, particularly ad-supported plans, have emerged as the most effective tool for retaining and winning back subscribers.
However, ad fatigue remains a major issue: 70% of viewers say the same ads repeat too frequently, making repetition the top frustration with AVOD services. Meanwhile, 91% of U.S. internet households subscribe to at least one SVOD service, and the average SVOD household now maintains 5.8 subscriptions, up from 5.5 in 2021.
Industry analysts note that platforms should treat affordability for streaming not as a short-term discount tactic, but as a long-term pricing strategy in an increasingly mature and competitive market.
