US household spending on streaming subs decline 25% since 2021 | Media Analysis | Business | News | Rapid TV News
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Assessing the effects of what they say are seismic shifts occurring in the media and entertainment landscape, Parks Associates and Adeia research shows that US internet household spending on streaming subscription services has declined 25% to $73 per month versus $90 in 2021.
ROku Vix 26May2023
Parks Associates and Adeia have just published a white paper, Overcoming Complexity: Advertising in a Fragmented Landscape, look at how consumers respond to uncertain economic realities, assessing efforts by streaming providers to achieve and maintain profitability through yet another period of change and disruption.

One key finding was that nearly a third (31%) of households used free ad-based services by the end of 2022 -- posting the fourth consecutive year of market share growth since 2019.

“Concerns around inflation and streaming services price hikes are driving consumers to dynamically choose the streaming services that they subscribe to each month. As a result, AVOD services have risen in popularity, adding to the fragmentation of target audiences for advertisers and brands,” said Jean-Yves Couleaud, senior director of advanced R&D for Adeia.
“Leveraging first-party data is helpful for advertising; however, this first-party data as well as ad reporting are still locked within each streaming service. We, as industry technologists, are looking for technological solutions that will federate advertising opportunities and reporting across the disparate streaming landscape.”

“Leveraging data to provide relevant content and digital advertisements to keep viewers engaged is crucial, and tricky. Data is fragmented across operating systems and applications, and viewer consent is required,” added Jennifer Kent, VP, research, Parks Associates. "The next generation of TV and CTV advertising should not replicate traditional linear, pay-TV ad formats and models but offer interactive, actionable, secure, and enjoyable experiences that engage video viewers and attract ad dollars.”