Parks Study: Budget Pressures Lead 30% of Consumers to Cancel Streaming Services

A recent study from Parks Associates shows that more and more consumers are canceling streaming services due to household expenses. In 2025, 30% of consumers cited cutting costs as the main reason for canceling, up from 26% in 2020. This shift highlights a trend where affordability is becoming a key factor in consumer decisions.

According to Michael Goodman, director of entertainment research at Parks Associates, consumers are now prioritizing price points over specific services. Platforms that focus on affordability as a long-term strategy, rather than just discounts, are better equipped to retain customers in today’s competitive market.

While exclusive content used to be a major factor in attracting and retaining subscribers, it is no longer enough. Parks Associates’ research shows that nearly 25% of subscribers cancel their service after finishing a show, indicating a shift towards rotating between services in a saturated streaming landscape.

Surprisingly, ad-supported tiers have emerged as a powerful way to retain subscribers. Lower-cost plans with ads are now more appealing to consumers than flexible features like pause options or loyalty pricing. However, ads can also be a source of dissatisfaction, with 70% of viewers expressing frustration at repetitive ads.

Despite these challenges, the study found that 91% of US households subscribe to at least one streaming service, with the average household maintaining 5.8 subscriptions. This suggests that streaming has become a standard household expense rather than a luxury.

The data also revealed that churn is often cyclical, rather than permanent. Flexible pricing, ad-supported options, and clear value messaging are crucial for extending the lifetime of subscribers. Parks Associates’ research offers valuable insights for media companies looking to stay profitable in a competitive streaming market.