Here’s a shocking revelation: nearly half of U.S. internet households—45% to be exact—are tuning into free ad-supported streaming television (FAST) services, according to fresh data from Parks Associates. But here’s where it gets controversial: while this number seems impressive, it actually marks a decline from earlier growth, suggesting the FAST boom might be hitting a wall. Could this be a sign that viewers are growing weary of ads, or is it just a temporary plateau? Let’s dive in.
By now, it’s no secret that streaming has taken over American living rooms. Parks Associates reveals that a staggering 89% of internet households subscribe to at least one streaming service. And this is the part most people miss: among those subscribing to the top eight ad-supported video-on-demand (AVOD) services, 59% are opting for basic tiers with ads. Why? It’s simple—cost. In a market flooded with options, consumers are getting savvier about where they spend their money.
Speaking of spending, subscription video on demand (SVOD) costs have held steady, even as the market grows fiercely competitive and ‘subscription fatigue’ starts to set in. Meanwhile, traditional pay-TV is losing ground fast, with spending dropping sharply since the post-pandemic peak. Here’s the twist: transactional video on demand (TVOD), where users pay for single events like live sports or new movie releases, is making a comeback. Could this be the future of flexible entertainment spending?
Ad-supported video isn’t just surviving—it’s thriving. Connected TV (CTV) platforms are doubling down on ad addressability and measurement, allowing them to charge higher advertising rates. But with FAST usage dipping to 45% in early 2025, Parks Associates warns that advertisers might need to get creative. Targeted, integrated campaigns could be the key to keeping viewers hooked.
Overall, household video spending seems to have stabilized in 2025, thanks to cost-conscious strategies like subscription rotation and cutting redundant services. But here’s the question: as the streaming landscape evolves, will consumers continue to juggle multiple services, or will they demand more streamlined, affordable options? Let us know your thoughts in the comments.
For the full scoop, Parks Associates will unveil its ‘State of Streaming (S.O.S.)’ report at the eighth annual ‘Future of Video: Business of Streaming’ conference, happening November 18–20 at the Marina del Rey Marriott. With keynote speakers from industry giants like Charter Communications, Verizon Business, Tubi, and more, it’s an event you won’t want to miss. What’s your take on the future of streaming? Are ads here to stay, or will viewers demand something different? Share your predictions below!
