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Digital media subscription market holds steady despite higher costs
Despite ongoing price increases, the U.S. digital subscription market remains remarkably stable, with consumers embracing ad-supported and bundled options to balance cost and content value.
October 30, 2025 | By Rande Price, Research VP – DCN
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DCN’s Q3 2025 Digital Subscription Tracking Report reveals that the U.S. digital media market continues to show stability despite rising costs. Nearly all U.S. households (97%) maintain at least one digital media subscription, reflecting consumers’ sustained commitment to entertainment and information even amid price increases. Average monthly household spending climbed to $151.05, up from $149.64 in Q2, signaling both price adjustments and ongoing engagement with digital content.
While the overall market remains mature, shifting consumer preferences—particularly toward ad-supported and bundled offerings are reshaping how households manage their subscriptions across streaming video, digital publishing, and audio.
Subscription confidence rebounds
Consumer sentiment is strong, with more households planning to add rather than cancel services. The market recorded its strongest net gain in two years (+8.8%), underscoring confidence and ongoing willingness to explore new digital offerings.
Ad-Supported streaming grows
Subscription video on demand (SVOD) continues to dominate, with 92% of households maintaining at least one service. However, the model mix is shifting: 76% of SVOD subscribers now use ad-supported tiers, a sharp increase driven by Disney+ (+28%) and Netflix (+26%) adoption. This marks a clear evolution as streaming services balance growth with affordability.
Bundling expands across categories
Bundling remains a key retention strategy and value driver. Over 57% of SVOD subscriptions are now part of bundled offerings, helping reduce churn while expanding cross-category engagement. Beyond video, bundling is also gaining traction in publishing, with 20% of digital news and magazine subscriptions included in multi-service packages.
A mature but dynamic market
Households continue to prioritize access to premium digital experiences. The combination of higher prices, growing bundle adoption, and an expanding array of ad-supported options highlights a more value-driven and intentional consumer approach to media consumption.
The U.S. digital media market remains strong, with nearly universal household participation and steady growth in spending. As industry matures, consumer flexibility and strategic bundling are redefining how value is delivered, and how loyalty is maintained in a crowded subscription landscape.