U.S. Home Video Spending To Shrink 8% In 4 Years, Streaming Declines

Spending on video services by U.S. households is projected to fall by 8% to around $1,060 per year in four years, according to Ampere Analysis.

The advertising and media research company says U.S. homes video spend peaked last year at $1,150 a year, largely attributable to lower spending on streaming.

“2023 will become known as the year when per-household spending on subscription streaming (SVoD) services in the U.S. could no longer compensate for the continued decline in pay TV and spend on video begins to shrink,” according to authors of the report.

Legacy pay TV cord-cutting is also a major part of this move -- as well as downward pressure for less spending on streaming services. Subscribers are looking to lower their over monthly, which can include trimming back the number of services per month -- or moving to lower cost ad-supported options.

Ampere Analysis writes: “The added impact of cord-cutting will see yearly pay TV investment per average household fall below $650 for the first time since 2006. The result is likely to be the beginning of a slow decline in annual average household expenditure on TV.”



But in Europe it is a different story -- with spending on video services still rising.

Western Europe territories will see an 11% increase by 2027. For example, Norway is set to overtake the U.S. in video spending in 2025, coming in around $1,125 a month.

After Norway, the U.K. will be the next-highest in spend, rising to $800 a month in 2027 from $750 in 2022.

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