Entertainment: State of Streaming: As Uncertainty Mounts, Video Streamers Scale Back and Rethink Loyalty

Why it is the topic trending:

• Cord-Cutting Momentum Stalling: After a surge during the pandemic, the growth of cord-cutting has nearly flatlined, raising questions about the sustainability of streaming-only households.

• Subscription Fatigue: Consumers are increasingly feeling overwhelmed and financially strained by the growing number and cost of streaming services.

• Shifting Consumer Behavior: More streamers are looking to cut back on spending, and some are canceling services altogether due to financial pressures and the fragmented content landscape.

• Exploring Alternative Options: Consumers are considering more cost-effective alternatives like ad-supported plans and digital antennas.

• Uncertainty in the Streaming Landscape: The market is at a critical inflection point as growth slows and business models are being re-evaluated.

Overview:

The CivicScience article discusses the current state of the video streaming market in May 2025, highlighting a slowdown in the cord-cutting trend that boomed during the pandemic. As the streaming landscape becomes more fragmented with numerous services and rising costs, akin to traditional cable, consumers are expressing concerns about subscription fatigue and financial strain. The article explores current consumer sentiment, intent to cancel subscriptions, preferences for ad-supported models, and the potential resurgence of digital antennas as viewers seek more affordable entertainment options in an uncertain economic climate.

Detailed Findings:

• Cord-Cutting Trends: The share of Americans without traditional cable/satellite TV rose significantly from 2020 to 2024 but has shown minimal growth into mid-May 2025. Interestingly, cord-cutting is increasing among Americans aged 55+.

• Subscription Numbers: While a majority of U.S. adults have two or more streaming subscriptions, the number of households with four or more subscriptions has decreased since December 2024, particularly among higher-income households.

• Financial Strain and Cancellation Intent: A significant percentage of U.S. adults (21%) have canceled or plan to cancel streaming services to ease financial strain, with this figure being higher among the 30-44 age group. A large majority (60%) want to reduce their spending on video streaming.

• Subscription Fatigue: A substantial 69% of subscribers report feeling ‘subscription fatigue,’ and the intent to cancel a subscription due to this has increased compared to Q4 2024. The number of services required to watch desired content is a major contributor to this fatigue, with 78% believing streaming is becoming as expensive as cable.

• Platform Intent and Retention: Netflix, Amazon Prime Video, and Hulu are the most likely choices for new subscriptions in the next 30 days, but also face the highest risk of cancellations. A significant 57% of streamers do not plan to cancel any service in the short term.

• Apple TV+ Challenges: While not leading in cancellation risk, Apple TV+ faces challenges with lower usage and likeability compared to Netflix and Amazon Prime Video, and its users report higher subscription fatigue.

• Preference for Ad-Based Models: Consumer preference for ad-supported streaming options has increased, with 44% favoring it over ad-free plans, driven by a desire for lower-cost or free access. This model is particularly appealing to higher-income Americans and those aged 45+.

• Digital Antenna Interest: Interest in using digital antennas for cost-effective TV access is notable among younger consumers, especially Gen Z (18-29), potentially contributing to the stagnation of cord-cutting within this demographic.

Key Success Factors of Product (Trend):

• Cost-Effectiveness: The growing appeal of ad-supported plans and the interest in digital antennas highlight the importance of affordability for consumers.

• Content Aggregation: The frustration with needing multiple subscriptions suggests that services or bundles that can aggregate content and reduce the need for numerous platforms may find success.

• User Experience and Convenience: Services that offer a seamless and convenient viewing experience across devices, without the complexities of managing multiple subscriptions, will likely retain users better.

• Value Proposition: Consumers are increasingly evaluating the value they receive from their streaming subscriptions, weighing the cost against the content available and the necessity of the service.

• Flexibility and Choice: Offering flexible subscription options, such as the ability to easily cancel or switch between ad-supported and ad-free tiers, could enhance customer loyalty.

Key Takeaway:

The streaming landscape in 2025 is facing significant headwinds as cord-cutting growth stalls, consumers experience subscription fatigue and financial strain, and the fractured nature of the market makes it difficult and costly to access desired content. The industry may need to adapt towards more flexible and affordable models, such as ad-supported plans and potentially content aggregation, to retain subscribers and navigate this period of uncertainty.

Main Trend:

The Re-evaluation of Streaming Value

Description of the Trend (please name it):

Streaming Correction: This trend signifies a period of adjustment and recalibration within the video streaming market. After a period of explosive growth, consumers are now critically evaluating the cost, convenience, and necessity of their numerous subscriptions, leading to a slowdown in new subscriber acquisition, increased cancellation rates, and a demand for more affordable and streamlined viewing options.

What is Consumer Motivation:

• Cost Savings: A primary driver for considering cancellations, exploring ad-supported plans, and looking into alternatives like digital antennas.

• Reducing Complexity: The frustration with managing multiple subscriptions and needing different services for various content.

• Seeking Value for Money: Consumers want to feel they are getting sufficient entertainment for the amount they are paying.

• Convenience and Ease of Access: A desire for a simple and efficient way to watch their favorite shows and movies without navigating multiple platforms.

• Avoiding Subscription Overload: The feeling of being overwhelmed by the sheer number of streaming services available and the associated costs.

What is Driving Trend:

• Market Saturation: The abundance of streaming services leading to a fragmented content landscape.

• Rising Subscription Costs: Price increases by major streaming platforms further strain consumer budgets.

• Economic Uncertainty: Inflation and broader economic concerns making consumers more budget-conscious.

• Content Fragmentation: Key shows and movies being exclusive to specific platforms, requiring multiple subscriptions.

• Return to Traditional TV Viewing Habits (to a degree): The stagnation of cord-cutting suggests some consumers may be finding a balance or are not entirely abandoning traditional TV.

What is Motivation Beyond the Trend:

Beyond immediate financial and practical concerns:

• Desire for Simplicity: A broader trend of decluttering and simplifying various aspects of life, including entertainment.

• Control Over Spending: Consumers wanting to have more control over their monthly expenses and discretionary spending.

• Seeking Alternatives: A willingness to explore different ways to access video content if streaming becomes too costly or cumbersome.

• Potential Shift in Entertainment Priorities: Consumers may be re-evaluating how they spend their leisure time and entertainment budgets.

Description of Consumers Article is Referring To:

The article refers to U.S. adults who have adopted video-on-demand streaming services, with a particular focus on cord-cutters and households with multiple subscriptions.

• Who are them: U.S. adults who use streaming services.

• What kind of products they like: Video entertainment content (movies, TV shows) available on streaming platforms.

• What is their age?: Includes all age groups, with specific mentions of under 45, 55+, and 30-44.

• What is their gender?: Not explicitly segmented by gender.

• What is their income?: Segmented into higher-income households (more likely to trim subscriptions) and potentially others facing financial strain.

• What is their lifestyle: Includes cord-cutters who have replaced traditional cable, as well as those who supplement cable with streaming or are solely reliant on streaming.

• What are their category article is referring shopping preferences: Video streaming subscriptions.

• Are they low, occasional or frequent category shoppers: Frequent category shoppers as they are subscribers to one or more services.

• What are their general shopping preferences-how they shop: Likely influenced by cost and value, convenience, and the availability of desired content. They are also likely digitally savvy as they are users of streaming services.

Conclusions:

The streaming market in 2025 is at a crucial juncture, with slowing growth and increasing consumer concerns about cost and content fragmentation. Streaming services will likely need to rethink their strategies to prioritize affordability, convenience, and value to retain subscribers in an increasingly competitive and uncertain economic environment.

Implications for Brands (Streaming Services):

• Consider Ad-Supported Tiers: Offering lower-cost or free ad-supported plans can attract price-sensitive consumers and potentially offset subscriber churn.

• Focus on Content Bundling: Exploring partnerships or internal bundling of content to reduce the need for multiple subscriptions for consumers.

• Enhance User Experience: Streamline navigation, offer personalized recommendations, and improve the overall viewing experience to increase subscriber satisfaction.

• Re-evaluate Pricing Strategies: Consider more flexible or tiered pricing models to cater to different budget constraints and content needs.

• Strengthen Content Retention: Focus on creating or acquiring exclusive, high-quality content that justifies the subscription cost and reduces the likelihood of cancellation.

Implication for Society:

• Potential Shift in Entertainment Consumption: A move towards more ad-supported models or reliance on free content through antennas could reshape how society accesses video entertainment.

• Increased Digital Literacy: Consumers may need to become more savvy about managing subscriptions and exploring alternative viewing options.

Implications for Consumers:

• More Affordable Options: The potential for more widespread ad-supported plans could lower the overall cost of accessing streaming content.

• Greater Need for Subscription Management: Consumers will likely need to be more proactive in managing their subscriptions to avoid overspending.

• Potential Return to Traditional TV Habits (in part): Some consumers may find a balance between streaming and over-the-air broadcasts.

Implication for Future:

• More Competitive Streaming Landscape: Services will need to compete more fiercely for subscribers based on price, content, and value.

• Potential Consolidation in the Market: The challenges faced by smaller players could lead to mergers or acquisitions.

• Evolution of Business Models: Streaming services may need to move beyond purely subscription-based models to ensure long-term sustainability.

Consumer Trend (name, detailed description):

• Name: The Value-Driven Viewer

• Detailed Description: Consumers are increasingly scrutinizing the cost and value proposition of their streaming subscriptions. They are more willing to explore lower-cost options, such as ad-supported tiers, and are likely to cancel services that do not consistently provide content that meets their needs and budget.

Consumer Sub Trend (name, detailed description):

• Name: Subscription Management Fatigue

• Detailed Description: Consumers are experiencing growing weariness with the effort and expense of managing multiple streaming subscriptions, each offering exclusive content. This fatigue is leading to a desire for simplification and potentially fewer subscriptions overall.

Big Social Trend (name, detailed description):

• Name: Economic Uncertainty Influencing Spending

• Detailed Description: Broader economic pressures, including inflation and concerns about financial stability, are prompting consumers to re-evaluate their spending habits across various sectors, including entertainment and subscription services.

Worldwide Social Trend (name, detailed description):

• Name: The Global Search for Affordable Entertainment

• Detailed Description: Across the globe, consumers are seeking cost-effective ways to access entertainment content, leading to the popularity of free or lower-cost options and the scrutiny of expensive subscription models.

Social Drive (name, detailed description):

• Name: The Quest for Accessible and Affordable Content

• Detailed Description: Consumers are fundamentally driven by the desire to access the video content they want in a way that is both convenient and affordable, leading them to explore various viewing options beyond traditional cable.

Learnings for brands to use in 2025:

• Recognize Price Sensitivity: Understand that consumers are increasingly price-sensitive regarding entertainment subscriptions.

• Offer Flexible Options: Provide a range of subscription tiers and ad-supported choices to cater to different budget needs.

• Focus on Content Quality and Relevance: Ensure that the content offered justifies the subscription cost and meets the interests of the target audience.

• Simplify User Experience: Make it easy for users to navigate the platform and manage their subscriptions.

• Monitor Churn Rates and Understand Cancellation Drivers: Actively track why subscribers are leaving and adapt strategies to improve retention.

Strategy Recommendations for brands to follow in 2025:

• Implement or Expand Ad-Supported Tiers: Introduce or further develop lower-priced ad-supported options to attract and retain cost-conscious viewers.

• Explore Content Bundling Opportunities: Partner with other streaming services or content providers to offer bundled subscriptions at a discounted rate.

• Invest in Content That Drives Loyalty: Focus on creating exclusive, critically acclaimed, or highly anticipated content that keeps subscribers engaged long-term.

• Personalize Recommendations and User Experience: Utilize data to provide tailored content suggestions and a more intuitive platform experience.

• Offer Promotional Discounts and Incentives: Attract new subscribers and encourage retention through limited-time offers, student discounts, or other incentives.

Final sentence (key concept) describing main trend from article (which is a summary of all trends specified):

The state of streaming in 2025 reveals a market undergoing a significant correction, where consumer loyalty is increasingly tied to affordability, value, and convenience over sheer content volume.

What brands & companies should do in 2025 to benefit from trend and how to do it:

In 2025, video streaming brands and companies should prioritize strategies that address consumer concerns about cost and content fragmentation. This involves a serious consideration of ad-supported tiers as a viable way to offer more affordable access, exploring potential content bundling opportunities to simplify the viewing experience, and a continued focus on creating high-quality, exclusive content that justifies subscription costs. By understanding that value, convenience, and cost-effectiveness are now paramount for consumers in a saturated market, streaming providers can adapt their business models to improve subscriber retention and navigate the evolving landscape successfully.

Final Note: Core Trend

• Name: The Streaming Value Reckoning

• Detailed Description: Consumers are actively reassessing the value they receive from their streaming subscriptions, leading to increased churn and a demand for more affordable and comprehensive options.

Final Note: Core Strategy

• Name: Prioritize Affordability and Value

• Detailed Description: Streaming services must prioritize offering cost-effective subscription models and ensuring a strong perceived value through their content and user experience to retain subscribers.

Final Note: Core Industry Trend

• Name: The Rise of Hybrid Streaming Models

• Detailed Description: The industry trend is leaning towards a mix of subscription and ad-supported models as providers seek to balance revenue generation with consumer affordability and preference.

Final Note: Core Consumer Motivation

• Name: Seeking Affordable and Accessible Entertainment

• Detailed Description: Consumers are primarily motivated by the desire to access a wide range of high-quality video entertainment in a way that fits their budget and lifestyle without the complexities of numerous subscriptions.

Final Conclusion:

The state of streaming in 2025 highlights a significant shift in consumer behavior, driven by economic pressures and subscription fatigue. Streaming services that proactively adapt to prioritize affordability, value, and user experience, potentially through hybrid models, will be best positioned to thrive in this evolving and increasingly competitive entertainment landscape.

Core Trend Detailed:

• Description: The Streaming Value Reckoning describes the critical point at which consumers, having embraced video streaming services as a primary source of entertainment, are now taking a more discerning and cost-conscious approach to their subscriptions. This involves a careful evaluation of the value proposition offered by each service in relation to its cost, leading to a re-prioritization of entertainment spending and a willingness to cancel or switch services to better align with their budgets and viewing habits.

• Key Characteristics of the Trend:

  • Increased Churn Rates: Higher numbers of subscribers canceling services, indicating dissatisfaction with the cost-to-value ratio.

  • Slower Subscriber Growth: The rapid growth experienced during the pandemic has plateaued, with new subscriber acquisition becoming more challenging.

  • Price Sensitivity: Consumers are more attuned to the monthly costs of their subscriptions and are actively seeking ways to reduce these expenses.

  • Subscription Fatigue: Overwhelmed by the sheer number of services and the effort required to manage them, leading to a desire for simplification.

  • Demand for Bundling or Aggregation: Consumers are increasingly interested in services that offer a wider range of content under a single subscription.

• Market and Cultural Signals Supporting the Trend:

  • Flatlining Cord-Cutting Growth: The slowdown in consumers abandoning traditional TV suggests that the streaming-only model may not be universally appealing or sustainable at current costs.

  • Decrease in Multiple Subscriptions: The drop in households with four or more streaming services indicates a conscious effort to reduce subscription numbers.

  • Preference for Ad-Supported Options: The growing popularity of lower-cost or free ad-supported plans demonstrates a willingness to accept advertising in exchange for affordability.

  • Intent to Cancel Services: A significant portion of consumers stating their intention to cancel highlights the financial strain and subscription fatigue.

  • Limited Growth for Newer Entrants: The challenges faced by platforms like Apple TV+ suggest a more cautious approach from consumers towards adding new, potentially costly, services.

• How the Trend Is Changing Consumer Behavior:

  • More Frequent Subscription Management: Consumers are actively reviewing and managing their streaming subscriptions, canceling those that are not frequently used or deemed too expensive.

  • Greater Willingness to Switch Services: Loyalty to a particular platform may decrease if consumers can find similar content for a lower price elsewhere.

  • Increased Acceptance of Advertising: Consumers are showing a greater openness to ad-supported models as a way to access content more affordably.

  • Seeking Free or Lower-Cost Alternatives: An increased interest in options like digital antennas or free streaming services.

  • Prioritizing Content Over Platform Exclusivity: Consumers may opt for services that offer a broader range of content that appeals to the whole household rather than subscribing to multiple niche platforms for specific shows.

• Implications Across the Ecosystem:

  • For Brands and CPGs: Increased opportunities for advertising on ad-supported streaming tiers, potentially reaching a large audience that is more budget-conscious.

  • For Retailers: Potential for increased sales of digital antennas and related hardware as consumers explore cost-effective alternatives to streaming.

  • For Consumers: More affordable access to streaming content through ad-supported models, but potentially with the trade-off of having to watch commercials. A greater need to actively manage their subscriptions to optimize costs.

Strategic Forecast:

• The streaming market will likely see a greater prevalence of hybrid models, with both ad-free and ad-supported tiers becoming the norm.

• Content bundling and aggregation, either through partnerships or internal offerings, may become more common as services try to retain subscribers.

• Competition among streaming platforms will intensify, with a greater focus on price, value, and the quality of content.

• The rate of new subscriber growth will likely remain slower compared to the pandemic boom, requiring services to focus more on retention.

• The long-term sustainability of some smaller, niche streaming services may be challenged, potentially leading to consolidation within the industry.

Final Thought (summary):

The state of streaming in 2025 reveals a market undergoing a significant correction, where consumer loyalty is increasingly tied to affordability, value, and convenience over sheer content volume.

Source: https://civicscience.com/state-of-streaming-as-uncertainty-mounts-video-streamers-scale-back-and-rethink-loyalty/