< Back to CTAM Think: The AI Series

  • October 2026

By Sean Beney
Sr. Consultant
KS&R

A subscription can feel expensive when budgets tighten or when value becomes less clear. KS&R’s nationwide survey among N=1,100 consumers underscores the budget challenge: 40% of respondents report spending less on discretionary purchases as compared to a year ago, including 18% spending much less.

Subscriptions are a notable part of that equation. More than one in four (27%) say they tend to cut subscriptions and memberships when budgets tighten, while 22% specifically cited TV or streaming services. These categories can overlap, but each points to the pressure of recurring expenses.

That raises a practical question for an industry exploring AI’s potential: Can better discovery, more relevant recommendations, and simpler service management help subscribers get more from what they already pay for? AI itself does not change a service’s price or boost household purchasing power. It may, however, help consumers find more value within the offerings already provided to them.

Why subscribers leave

Three overarching reasons for cancelling video subscription services are a need to reduce spending, the feeling a service is not worth its price, and a lack of use. These reasons may overlap, but they suggest different responses. When consumers who no longer subscribe to a streaming service were asked why they left, these reasons rose to the top.

Reason for no longer subscribing

1. Wasn’t using it often enough – 44%
2. Needed to reduce overall spending – 38%
3. Wasn’t worth the price – 37%
4. Didn’t offer content of interest – 22%

Underuse and a perceived lack of relevant content give providers reason to examine whether subscribers understand and use what their services offer. The distinction matters: consumers who cannot find something appealing to watch may just need help with discovery, while those whose interests are not represented may need a different content offering.

Streaming’s navigation problem

More than half of streaming viewers (53%) agree that having so many platforms makes choosing what to watch overwhelming. There is also broad interest in a single service for browsing, searching, and watching across streaming platforms, with 87% expressing interest, including 30% who say they would be willing to pay for it.

These findings support exploring simpler navigation as a way to improve the viewing experience – an area in which AI may be able to help

Where AI could add value

AI could be leveraged to help extract more value and make platform navigation less burdensome so consumers can find worthwhile offerings within the services they already have. Four applications are worth testing:

  • Discovery across subscribed services: Help viewers find relevant content already included in their subscriptions, using requests based on mood, available time, or viewing companions.
  • Personalization that supports continued use: Suggest a relevant next title after a viewer finishes the program that prompted the subscription.
  • Plan and bundle optimization: Guide consumers toward existing tiers, bundles, or included benefits that fit their viewing needs and budgets.
  • Service management and support: Help viewers understand bills, troubleshoot access, and manage subscriptions when they need assistance.

Addressing the limits

However, each application comes with its own constraints and considerations:

  • Accurate information: Reliable catalog data and a clear understanding of which content a subscriber can access are essential for discovery tools to work effectively.
  • Accessible content: Recommendations cannot compensate for content a service lacks. Providers should evaluate discovery assistance alongside their content catalogue.
  • Available pricing options: Any savings depend on choosing a different plan, bundle, or purchase from the options available. AI can help explain those choices, but it ultimately does not determine their prices.
  • Customer and business priorities: Providers should offer a clear path to human assistance when automated support cannot resolve an issue. They should also consider how to handle recommendations to downgrade or cancel, and test the longer-term implications for customer relationships.

Demonstrate value before adding cost

Interest in simpler streaming does not automatically translate into willingness to pay more. While 30% of streaming viewers would pay for a unified service, 57% are interested only if it adds no additional cost. Providers should therefore pilot discovery assistance within existing subscriptions or bundles before assuming consumers will buy yet another add-on.

Controlled pilots should measure whether these features improve discovery, viewing satisfaction, and perceived value. Providers can then assess whether those improvements translate into greater retention or conversion. Examining outcomes among infrequent users and consumers under budget pressure would help identify where targeted benefits exist.

The opportunity for AI is to help subscribers get more worthwhile use from what they pay for. While providers may know the needs worth addressing, testing must establish where and how well AI solutions meet those needs and whether they make a subscription more valuable in the eyes of the customer.

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