The U.S. streaming market is highly fragmented, with 275 subscription video-on-demand services, 141 ad-supported on-demand services and 60 free ad-supported streaming television platforms competing for viewers and advertising, according to research from Parks Associates. Its Streaming Video Tracker also lists 243 premium subscription services, 85 transactional video-on-demand offerings, 110 free ad-supported channels, 55 ad-supported subscription tiers and eight virtual multichannel distributors. These categories overlap because providers combine different business models, so the figures should not be added together as a total number of distinct services.
The crowded field is putting pressure on the economics of streaming. Industry surveys cited in the report indicate that households that once subscribed to six or seven services have settled closer to three. Meanwhile, content costs are rising, advertising revenue is spread across more platforms and consumers’ willingness to take on additional monthly fees has plateaued. Smaller and mid-sized services may struggle to cover programming, technology and marketing costs while earning sustainable returns.
Parks Associates has tracked services being phased out or consolidated each quarter, as companies rebrand, move content into larger platforms or leave the market. Some larger operators have combined sister brands in single apps or taken in content from weaker services, reducing the number of separate apps consumers need to manage while concentrating spending among fewer companies.
The report points to further consolidation as a possibility for services that cannot attract and retain enough subscribers or balance content spending with revenue. Options may include merging, licensing content to larger platforms or shutting down. The largest services capture most viewing time and revenue, while many niche and secondary platforms face uncertain paths to profitability.
With hundreds of services operating across subscription, advertising and free models, Parks Associates’ figures highlight a market competing for a limited pool of consumer spending and advertising. The report suggests the current roster may not be sustainable, with smaller platforms at risk of being absorbed or exiting in the coming years.
Sources: Cord Cutters News.