‘Cost’ And ‘Difficulty Finding Content’ Top Reasons For Canceling Streaming Services, Study Finds

The cost and the inability to find something to watch are two of the most common reasons why consumers are now canceling streaming services. This is one of the main findings from Parks Associates‘ The Viewer Journey: Navigating Streaming Options consumer study, which analyzes how households decide which services to pay for.

According to the study, 48% of U.S. internet households canceled a streaming video service in the past 12 months. Of those, 61% stated the cancelation was a result of spending too much on streaming services. Likewise, 57% percent said they often switch streaming services due to not being able to find anything to watch.

The third most common reason given was the vast number of streaming services and this was then followed by frustration when services cancel or remove popular shows.

“Service providers are in a precarious position in finding the right balance between cost and content, as many consumers are ready to vent their frustrations by cancelling a service,” said Sarah Lee, Research Analyst, Parks Associates. “But consumers are not excited by the many service choices—more than half of households who recently churned feel there are too many streaming options to choose from.”

This point of too many streaming services to choose from, mixed with consumer desire for an easier way to find content, has led to Parks Associates suggesting consolidation is a good thing, even using the recent confirmation of a combined sports streaming service from Disney, Fox and Warner Bros. Discovery as a prime example.

“This finding suggests consolidated service models are the right move. For example, ESPN, Fox Corp., and Warner Bros. Discovery recently announced a streaming sports service that will include multiple networks and all major sports leagues. Consumers wants this type of one-stop service,” Lee said.

In spite of the survey providing insight into why consumers are canceling services, homes appear to be subscribed to more services than ever before. Based on previous data from Parks Associates, households subscribe to 5.8 services on average, with 29% subscribing to more than eight streaming services at the same time.