Streaming Surges Ahead of Cable as U.S. Households Shift Viewing Habits

Americans are watching more television than ever—but how they watch it has changed dramatically. According to Bank of America (BofA) Global Research, streaming platforms surpassed the combined share of broadcast and cable in May 2025, marking a watershed moment in the evolution of home entertainment.

Spending on Streaming Nears Cable’s Decline

Data from the Bureau of Economic Analysis shows consumer spending on video and audio streaming is now close to overtaking outlays on cable and satellite services. A chart in the Bank of America Institute’s August 27 report illustrates the divergence: while cable and satellite revenues have plateaued and even begun to decline, streaming has climbed steadily since 2019.

BofA’s own internal data, which tracks credit and debit card activity across households, underscores the momentum. Spending on streaming services grew more than 10% year over year as of July 2025, outpacing the broader entertainment sector, which includes cable TV, movie theaters, theme parks, and tourist attractions.

Broad-Based Adoption, Uneven Outlays

The report notes that streaming growth cuts across income brackets. Lower-income households spent around 8% less than the national average on streaming, while higher-income groups spent about 9% more. Two-thirds of households paid less than $40 per month on streaming during the May–July 2025 period, but roughly 16% spent over $80, with around 10% exceeding $100.

This wide distribution, according to the Institute, “may represent opportunities for streaming providers to boost future growth by attracting more light users to scale up”.

Churn and Competition

Still, competition in the streaming landscape is fierce. BofA data shows considerable volatility in household payments, with many customers adding or canceling subscriptions from year to year. The report attributes smaller monthly increases of $6 to $14 to price hikes by providers, while larger swings—above $15—likely reflect subscription changes.

Survey data reinforces the churn. A June 2025 BofA Proprietary Insights Study found that 18% of respondents either canceled or started a streaming subscription in the previous month.

What’s Next: Sports, Music, and AI

• Content Investment: Following what some analysts have called a “content recession,” providers are recalibrating toward quality over quantity. Recent takeovers in the industry could reignite spending on original productions.

• Music and Audio Expansion: Platforms are broadening into podcasts and audiobooks, with some exploring premium tiers aimed at so-called “super fans.”
• Live Sports: New sports-focused services have entered the market, and consumer analytics firm CivicScience found that 35% of sports fans expect to subscribe to a new service specifically for sports this fall and winter. Women’s sports, in particular, are cited as a growth frontier.
• Artificial Intelligence: BofA notes that AI can lower production costs and enable faster content generation. Yet it also lowers barriers for new entrants, raising the competitive stakes.

“While there’s little doubt that consumers will continue to want to spend a large part of their free time watching shows and sports, it is likely how they access that entertainment that will continue to evolve,” the report concludes.

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