Fragmentation fatigue drives consumers toward aggregated pay TV services

Parks Associates released a new white paper examining how fragmentation in the streaming market is shaping consumer behavior and advertising strategies.

The report, titled “Unified Streaming: Unlocking Next-Gen Advertising,” was developed in partnership with Philo and is based on quarterly research of 8,000 U.S. internet households.

The firm found that 33% of pay TV subscribers remain subscribed because it offers access to more content in one place.

The findings reflect growing “fragmentation fatigue” among consumers, as the average U.S. internet household now subscribes to 5.3 streaming services. More than 300 streaming services are available in the U.S., contributing to increased complexity in content discovery.

“Aggregation is now a strategic advantage,” said Elizabeth Parks, president and CMO of Parks Associates. “Unified platforms simplify discovery, deepen engagement, and provide advertisers with more consistent measurement and targeting capabilities. A key finding of our research shows the strength of streaming TV (vMVPD) audiences as a foundation for next-generation advertising.”

The report identified streaming TV, or virtual multichannel video programming distributors (vMVPDs), as a central component of unified video platforms. According to the research, these users show higher engagement with interactive advertising formats than non-vMVPD users.

Fifty-five percent of streaming TV subscribers said they are interested in clicking on items within content for more information, compared with 31% of non-vMVPD users. Similarly, 51% expressed interest in interacting with ads, versus 27% of non-users, while 49% indicated interest in shopping for merchandise tied to programming, compared with 23% of non-users.

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“vMVPD subscribers, like Philo’s lifestyle and entertainment viewers, are watching longer than nearly anyone else in streaming. What this research confirms is what our advertising partners already see in their results: sustained, engaged viewing creates some of the strongest environments for CTV advertising,” said Reed Barker, head of advertising at Philo.

The white paper also highlighted the role of hybrid monetization models that combine subscription, ad-supported and transactional offerings. Parks Associates said these approaches can help providers balance revenue growth with audience expansion while offering more flexible viewing options.

The report pointed to lifestyle content as a key opportunity for advertisers, citing higher engagement with commerce-driven ad formats and stronger alignment with mobile purchasing behavior among these audiences.