Are you ready for this? Nearly half of all U.S. households with internet access are now tuning into free ad-supported streaming TV (FAST) services! That's a massive shift in how we consume video content, according to fresh data from Parks Associates. This means that services like Tubi, Roku Channel, and Pluto TV are grabbing a significant slice of the entertainment pie.
Let’s dive deeper. Parks Associates' research reveals that a whopping 89% of internet households subscribe to at least one streaming service. This underscores just how deeply ingrained streaming has become in our daily lives. But here’s where it gets interesting: even among those who subscribe to the top eight ad-supported subscription video on demand (SVOD) services – think Hulu, Paramount+, Peacock and the like – a considerable 59% are opting for the basic tiers that include those unavoidable advertisements. This suggests that while people are willing to pay for content, many are also price-sensitive and happy to put up with ads to save a few bucks.
Interestingly, Parks Associates notes that spending on subscription video on demand (SVOD) has remained relatively stable, despite intense competition from new entrants and the growing buzz around "subscription fatigue" – that feeling of being overwhelmed by too many monthly bills. But traditional pay-TV services? They're continuing their downward slide, with spending dropping significantly since the peak we saw during the pandemic. It seems more and more people are cutting the cord for good. What do you think - is traditional cable TV destined for extinction?
And this is the part most people miss... transactional video on demand (TVOD) – think renting or buying movies and shows on platforms like Apple TV or Amazon Prime Video – is making a comeback! Consumers are showing renewed interest in paying for single events, especially live sports and major film releases. This signals a shift toward more flexible monetization options, allowing viewers to pay only for what they really want to watch, when they want to watch it. For example, imagine only paying for a big UFC fight or the latest Marvel blockbuster, rather than being locked into a monthly subscription.
Furthermore, ad-supported video is gaining even more traction, with connected TV (CTV) platforms like Roku and Amazon Fire TV doubling down on ad addressability and measurement. Parks Associates points out that these advancements are allowing platforms to command higher advertising rates, because they can show advertisers exactly who they are reaching and how effective their ads are. This is a huge win for both the platforms and the advertisers, and it’s likely to fuel even more growth in the ad-supported streaming space.
But there's a twist! Despite the overall upward trend, FAST service usage actually dipped slightly to 45% of households in the first quarter of 2025. Parks Associates interprets this as a potential plateau. This might suggest that advertisers need to get smarter and more strategic with their campaigns to keep viewers engaged. Think more targeted ads, more integrated brand messaging, and perhaps even more innovative ad formats. But here's where it gets controversial... is it possible that people are simply getting tired of the sheer volume of ads, even in "free" services?
Ultimately, Parks Associates concludes that household video spending appears to have stabilized in 2025, after previous declines. Consumers are adopting cost-conscious strategies, like rotating subscriptions – subscribing to one service for a month, then switching to another – or dropping overlapping services. This "churn and burn" approach is becoming increasingly common, and it’s forcing streaming services to constantly innovate and offer compelling content to keep subscribers hooked.
Want to learn more? You can dive into the full “State of Streaming (S.O.S.)” report at Parks Associates’ eighth annual “Future of Video: Business of Streaming” conference, taking place November 18–20 at the Marina del Rey Marriott. They've got some big names lined up as keynote speakers, including folks from Charter Communications, Verizon Business, Tubi, Wurl, FloSports, and Needham & Company.
So, what do you think? Are you a FAST service fan? Are you rotating your subscriptions to save money? And do you believe that traditional pay-TV is on its way out? Share your thoughts in the comments below!
