According to a new study by Parks Associates, 42 percent of U.S. households now use an AVOD or FAST service, with SVOD penetration at 71 percent.

Parks also found that 18 percent of households use a TVOD service. Nearly half of all households – 46 percent – use five or more services. However, average spending has dropped from $80 per month six months ago to $63.

“Competition is fierce and the pressure is on to offer unique, immersive content and make it available on multiple platforms,” ​​said Elizabeth Parks, president and CMO of Parks Associates. “Consumers today are tired of the disjointed glut of streaming options available.”

Parks continued, “Household sentiment on the cost of streaming services is divided. About an equal number of households agree that they spend too much on streaming services and others disagree. Those who agree that they spend too much are likely entertainment fans who subscribe to and use more services. However, these households may soon look to reduce their costs or use more services with ads as prices continue to rise.”

A separate white paper from the company, produced in collaboration with JW Player (JWP), found that 67 percent of consumers watch social videos, 50 percent consume ad-free content, 33 percent use pay TV and 14 percent have an antenna for free-to-air channels. In addition, 65 percent watch content on their mobile phones.

“The video streaming business is undergoing a transformation,” said James Burt, Senior VP of Broadcast Solutions at JWP. “It is full of changing requirements to adapt to shifts in viewer consumption trends. Streaming management is also technically complex as broadcasters struggle to balance operational efficiency with innovation and growth. Yet more viewers than ever are using digital platforms to consume content. Streaming companies must review their technology, operations and productivity and make adjustments to achieve economies of scale and improve ROI.”

“In the early days of streaming, services focused on building subscribers through low fees, ad-free programming and high-quality original content,” added Sarah Lee, research analyst at Parks. “Now, to fully monetize those efforts, they must provide a consistent, high-quality television experience that spans all platforms.”