The Average Household Spends $8 Per Month on Streaming Services
More cold water on the financial side of streaming video: According to the researchers at Parks Associates the average household spends $8 per month on streaming services—and that number hasn't budged in three years.
Parks' tally includes all U.S. households, 30% of which don't spend on over-the-top (OTT) services at all. The field is getting more crowded, but the number of households with multiple services is balanced by the number with none or only inexpensive subscriptions. But with major new players entering the area, perhaps that figure will finally change.
"2019 may be poised to break that trend. Netflix, Hulu, and Amazon continue to pack on new subscribers. At the same time, services like ESPN+ are also experiencing phenomenal growth, and new offerings from Disney and WarnerMedia are set for release later this summer," says Brett Sappington, senior director of research at Parks Associates. "One of three things will happen—more households will become OTT streaming households, rival services will begin to pull subscribers away from Netflix, or that spending number will go up. "
Earlier this week, Vindicia revealed that the average streaming household in the U.S. uses 3.4 services and pays $8.53 for each one.
In related news, the Motion Picture Association of America (MPAA) said there were 613 million subscriptions to OTT services worldwide in 2018, a rise of 27% from the year before. Also, 2018 marked the first year that there were more OTT video subscriptions than subscriptions to cable.
Nielsen also breaks down how long different age groups search for something to watch on a streaming service. The average is 7.4 minutes.
A report from Vindicia and nScreenMedia shows people like having multiple streaming services and prefer low-cost options. Also, Amazon Channels has a strong following.