56 Million American Households Are Now Cord Cutters As Cord Cutting Grows

The streaming landscape is undergoing a dramatic transformation as cord-cutting continues to surge and viewers embrace ad-supported options. New research from Parks Associates reveals that 46% of US internet households, a staggering 56 million, have cut the cord with traditional pay TV, highlighting the growing dominance of streaming video services. Furthermore, 12% of households are “Cord Nevers,” having never subscribed to traditional pay TV, representing a unique opportunity for streaming providers.  
This shift in viewing habits is forcing service providers to adapt, offering competitive pricing, bundling options, and hybrid monetization strategies to attract and retain customers. The rise of ad-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST) services demonstrates the increasing demand for lower-cost alternatives to traditional subscription models.  
“Cord Nevers represent a unique opportunity for streaming providers,” says Jennifer Kent, Vice President of Research at Parks Associates. “By definition, this segment of the market has not paid for traditional pay TV, but streaming services have found a way to monetize a segment that has not previously valued subscription video or has grown up in a streaming-first market, with different conceptions of what subscription video should be.”  
The research also highlights a growing preference for ad-supported tiers among subscribers to leading streaming services. As of Q3 2024, a significant 59% of subscriptions across eight major platforms, including MAX, Netflix, Disney+, and Hulu, are for basic tiers with ads. This trend underscores the willingness of consumers to accept advertising in exchange for more affordable access to streaming content.  
To balance profitability and consumer preferences, many popular services now operate under a hybrid model, offering both ad-free and ad-supported plans. Ad-based tiers are not only cheaper for consumers but also more profitable for businesses, creating a win-win scenario for both parties.  

“Consumers are worn down from continued spending increases in streaming, while years of high inflation are driving consumers to pare down accordingly,” Kent explains. “This only intensifies the competition among streaming vendors and will fuel more growth of subscription tiers with ads and free ad-based services.”  
The streaming wars are far from over, and the increasing adoption of ad-supported tiers signifies a major shift in the battleground. As viewers continue to seek value and affordability, the ability to effectively monetize ad-supported models will be crucial for the success of streaming platforms in the years to come.