Streaming’s mid-tier is collapsing, and the average viewer couldn’t care less. That’s not a hot take. That’s cold, hard data.
According to TiVo’s Q4 2024 Video Trends Report, average service usage in the U.S. has dropped from over 11 to 9.9 streaming sources per household. Monthly spend is down nearly $20 year-over-year, and more viewers say they have “just the right amount” of services. In short? The era of “collect them all” is officially over.
But here’s where it gets juicy—people aren’t cutting back because streaming is bad. They’re cutting back because they’ve had enough.
When Streaming Becomes a Second Job
New data from Bango reveals that 13% of Brits spend over 1,460 hours a year streaming—that’s 60 full days. And more than a third (34%) watch at least two hours a day. That makes streaming the UK’s top digital habit, outranking social media, music, even TikTok.
People spend more time on Netflix than on Instagram. More hours on Prime Video than on TikTok. Streaming isn’t losing relevance—it’s hitting saturation. And that’s exactly why the mid-tier’s in trouble.
Because with so much time being sunk into a handful of platforms, who has the bandwidth for the “just okay” stuff? If your service isn’t habit-forming, it’s dead weight. And in a world where Americans average 5.4 subscriptions, with two of those typically bundled through broadband or telco plans, that sixth or seventh service? It’s toast.
Churned and Burned
For the first time, TiVo’s data shows that “we weren’t using it enough” has overtaken price as the top reason for canceling a streaming service. Not enough value. Not enough draw. Not enough relevance.
This isn’t churn caused by competition. It’s churn caused by disinterest. Which is worse.
Why? Because this isn’t a price war. It’s a war for habit. If users don’t reflexively open your app, you’ve already lost. Netflix knew this ten years ago. YouTube and TikTok are built on this principle. And now, according to Bango, Gen Z is consuming the most content but paying for the least, with Gen X footing most of the bill. Gen Z would rather spend on premium music or social subscriptions than yet another streamer with nothing new to offer.
Bundling 2.0 and the New Hierarchy of Relevance
Bundling is back—but it’s changed clothes. Today’s aggregation isn’t about set-top boxes or legacy cable packages. It’s about frictionless access. Subscription bundling via telco and broadband providers is becoming the stealthy distribution play, where convenience trumps brand recognition. Bango’s data makes it clear: value now lives in the package, not just the product.
But not everyone needs a middleman to stay relevant. The services that own their relationship with the viewer—those that sit on the home screen that know your name, that know what you like before you do—have their own edge. Not through ubiquity but through habit.
Because if there’s a hierarchy in this game, it’s built on repetition. The platforms that survive aren’t necessarily the biggest, but the ones you instinctively tap when you’ve got 10 minutes to spare. The ones that show up not with a library but with a reason to return.
Some are getting there by bundling. Others are doing it by becoming irreplaceable. Different strategies. Same goal.
Skip Says: Build Habit or Die
Legacy media built the “binge-and-bail” model and are now crying foul that users don’t stick around. You trained people to consume and cancel. And now you’re shocked they don’t want to commit?
The mid-tier is crumbling because it never built anything deeper than a press release. No loyalty. No reflex. No daily ritual.
So here’s the game:
- If you’re not daily, you’re disposable.
- If you’re not part of someone’s bundle, you’re a burden.
- If your app doesn’t scream value in under five seconds, it’s deleted.
The middle is collapsing. Consumers have spoken. They want less—just better. Not more content. More reasons to stay.
If you’re not building for habit, you’re building for churn. And mid-tier? You’re already halfway out the door.
