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U.S. Streaming Spending Holds at $69, 68% Use Ad Tiers

▼ Summary

– In 2025, average U.S. household spending on streaming services remained flat at $69 per month, according to a Deloitte study.
– The adoption of ad-supported streaming tiers grew significantly, with 68% of subscribers using one, up from 54% in 2024.
– About 73% of streaming customers expressed frustration over continual price hikes by services like Netflix and Disney+.
– “Fans,” who make up 80% of consumers, spend significantly more ($71/month) and more time on entertainment than “non-fans.”
– The study suggests AI could enhance fan experiences through personalized content digests and co-creation tools.

The average monthly spending on streaming video services in American households held steady at $69 in 2025, unchanged from the previous year. This plateau in expenditure coincides with a significant shift toward ad-supported models, according to the latest industry analysis. A striking 68% of U.S. streaming subscribers now use an ad-supported tier, a notable increase from 54% just a year earlier. This rapid adoption highlights a fundamental change in consumer behavior as platforms adjust their pricing strategies.

With roughly 90% of households subscribing to at least one paid video-on-demand service, market penetration is near saturation. The typical consumer maintains four paid subscriptions, a number that has remained constant for three consecutive years. This stability in subscriber count, however, masks underlying volatility and growing price sensitivity. Streaming price hikes from major players like Netflix, Disney+, Hulu, and Peacock throughout last year and into early 2026 have fueled consumer frustration. Deloitte’s research indicates that 73% of subscribers are annoyed by continual price increases, with 61% stating they would cancel their favorite service if its monthly cost rose by $5.

In this environment, ad-supported tiers have become crucial for growth. They are no longer viewed merely as a budget option but as a primary driver for acquiring and retaining subscribers. “Ad-supported tiers have emerged not just as a budget alternative, but as a primary engine of subscriber growth and engagement,” the Deloitte report states, pointing to consumer caution over recurring expenses. This sentiment is reflected in the annual churn rate, which stayed persistently high at around 40%.

A key segment insulating the industry from further contraction is the dedicated streaming fan. Approximately 80% of consumers self-identify as fans, and they represent a disproportionately valuable cohort. These enthusiasts spend an average of $71 monthly on video streaming, which is 27% more than non-fans. They also dedicate over an hour more each day to entertainment activities. As some households look to trim budgets, this passionate group’s loyalty becomes increasingly vital. “Passionate fans have the potential to become even more valuable, investing time, money and energy across platforms,” noted Doug Van Dyke, Deloitte’s U. S. telecom, media and entertainment sector leader.

Looking ahead, generative AI presents new opportunities for deepening fan engagement. The report suggests that entertainment companies can leverage AI to enhance the user experience. About 27% of fans expressed interest in AI-curated digests of updates about their favorite shows, while 24% are intrigued by the idea of co-creating content, such as developing alternative story endings. Furthermore, a notable portion of the audience appears receptive to AI-generated ads, with roughly one-third of fans indifferent to whether commercials are created using generative AI technology.

These insights are drawn from Deloitte’s 20th annual “Digital Media Trends” report, based on a survey of over 3,500 consumers conducted in late 2025. The data paints a picture of a mature market where growth is increasingly dependent on monetizing engaged super-users and intelligently integrating new technologies to add value, even as broader subscription spending levels off.

(Source: Variety)

Topics

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