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Supply Chains

Erik Gruenwedel

October 20, 2025

After rapid growth, the percentage of U.S. internet households using free ad-supported streaming television services dropped to 45% in Q1 2025, from 47% in the previous-year period, according to new data from Parks Associates.

Almost 90% of U.S. internet households subscribe to at least one streaming video service. The research firm found that 59% of subscriptions across the top eight ad-supported subscription streaming VOD services opt for the less expensive basic tier with ads.

Consumers are also willing to rent or buy single events, particularly live sports and tentpole releases, showing demand for flexible monetization options. Among legacy television distribution, consumers are opting for more flexibility and new viewing options.

“The real battle is shifting to the distribution, discovery, and monetization of video,” Elizabeth Parks, president/CMO, Parks Associates, said in a statement. “Traditional and digital distribution are converging, with ISPs and connected TV (CTV) platforms emerging as gatekeepers. Consumers don’t see categories anymore — they just want frictionless access. While the early years of streaming were focused on subscriber growth, advertising is becoming the primary growth engine for the video industry.”

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