Streaming Growth in Canada Despite Price Increase: TV Niche Trendsets

Canadians are increasingly turning to paid streaming platforms like Netflix and Disney Plus, even as prices continue to rise. According to a recent report by Convergence Research, the availability of ad-supported basic plans has helped keep the momentum going for streaming services in the battle against traditional cable and satellite TV providers. Convergence Research president Brahm Eiley noted, “The revolution’s already happened. The streaming stuff ain’t going away. It’s not niche. TV is becoming niche.”

The report, titled the 2025 Couch Potato Report, estimated that 46 percent of Canadian households, totaling 7.35 million, did not have a traditional television subscription at the end of last year. This number is up from 42 percent in 2023 and is projected to rise to 54 percent by 2027. Meanwhile, there was a four percent decline in the number of Canadians subscribed to traditional TV platforms in 2024, leading to a five percent drop in subscription revenue to approximately $6.5 billion.

Despite the increasing trend of cutting the cord, Canadian consumers are paying higher prices for streaming services compared to previous years. Eiley mentioned that Canadian households subscribed to digital platforms paid around eight percent more in 2024 than the year before. The report showed that the ten leading streaming providers raised their prices by an average of six percent for Canadian consumers last year. Subsequently, Canadian subscription revenue from streaming services grew around 15 percent year-over-year to $4.2 billion.

Eiley emphasized that even as streaming costs rise and restrictions on password sharing become more common, Canadian consumers are still attracted to these platforms due to the availability of more affordable package tiers that include ads. For instance, Netflix increased the cost of its standard Canadian plan with ads by $2 to $7.99 per month, while Disney Plus raised its monthly streaming fee by $1 last fall. Offers with ads typically cost 39 percent less on average than higher-tier packages without commercials, making them appealing to consumers looking to save money.

In an effort to address the changing landscape of the market, Canada’s broadcasting regulator passed the Online Streaming Act in 2023, requiring foreign streamers to contribute five percent of their Canadian revenue to a fund dedicated to producing Canadian content. However, major global streamers like Netflix and Disney Plus have challenged this ruling in court, arguing that it unfairly burdens them.

Eiley highlighted the dominance of non-Canadian providers in the streaming market, stating, “The problem with that for Canada is the vast majority of that revenue is going to non-Canadian providers … It’s still a non-Canadian dominated market.” The Federal Court of Appeal is set to hear these challenges in June before the funds are due in August.

In conclusion, the landscape of television watching in Canada is rapidly changing as more consumers opt for streaming services over traditional TV providers. With prices on the rise, many Canadians are choosing ad-supported plans to save money while enjoying a vast array of content. The battle between streaming giants and traditional TV companies continues as regulators work to navigate this evolving industry.