Report: Customers Are Spending Less on Streaming TV

The average number of streaming services used by consumers and the amount of money they are spending on these services both are declining, according to research from TiVo Platform Technologies, LLC. The time spent watching content is on the rise, however.

Streaming TV Spending

The firm said that the average number of streaming services used per customer decreased from 11.6 in the fourth quarter of last year to 10.9 in the second quarter of this year. A decrease in consumer spending followed: The average amount went from $189 per month to $170 per month during the past six months.

The decrease in the number of services used and money spent didn’t stop the amount of time watching video from increasing, however. Average usage was 4.4 hours per day in the fourth quarter of 2022 but increased to 4.7 hours during the second quarter of 2023.

The reduction in spending and increase in time spent consuming video may be explained by growth in ad-supported video on demand (AVOD) and free ad-supported streaming TV (FAST) sectors. The report characterized the growth of AVOD and FAST from the fourth quarter of last year as considerable, though it didn’t provide a figure.

“This new SVOD/AVOD hybrid structure allows users to consolidate their subscriptions, cut costs and still watch the same or more amount of content,” according to commentary in the press release. “With less disposable income available among consumers, the demand for flexibility in entertainment choices has surged in response to the evolving preferences in entertainment over the recent years.

Consumers are spending time looking for what they want to watch. The report found that 82% of consumers browse before selecting content, and that more than 60% use multiple apps to do so.

TiVo Platform Technologies LLC is a wholly owned subsidiary of Xperi Inc.


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