The news: Streaming is outplaying movie theaters for most consumers, despite frustration around streamers’ rising subscription prices.

• Three-quarters of US adults have streamed a recently released movie in the past year instead of watching it in a theater, per an AP-NORC poll.
• Only 16% go to a movie theater monthly, while twice as many (31%) stream a new movie that often.

Zooming out: It’s no surprise that moviegoers are dwindling in number considering the dominance of streaming platforms over linear TV—streaming captured 46.4% of total US TV viewing in August, per Nielsen.

Homeward bound: US movie viewers are choosing convenience over traditional big-screen experiences. This means home-viewing environments and connected TV (CTV) platforms are where most entertainment decisions—and potential ad exposure—are happening.

• Theatrical releases, once a cultural norm and anchor for audience reach, are becoming more niche experiences.
• Even with tighter budgets, more consumers plan to cut back on theater experiences than on streaming: 31% of US adults expect to spend less money on theaters this year, per Hub Research, compared with 28% who will spend less on streaming subscriptions.

Theaters aren’t disappearing, but their role is evolving from a weekly pastime to a special-event destination. Blockbuster flicks, cultural moments, film festivals, and prestige releases will keep drawing crowds even as streaming becomes the everyday hub for entertainment.

Ad-free opportunity: Streaming’s dominance doesn’t mean consumers are happy with subscription prices—66% of US consumers who dropped a streaming service said it was too expensive, per YouGov, and 42% think they already spend too much on streaming subscriptions.

Amid subscription fatigue, consumers may be more willing to consider ad-supported tiers. This can give marketers more reach, precision, and audience data as viewers switch to ad-inclusive plans.

What it means for marketers: Brands shouldn’t abandon theaters for streaming or vice versa but should instead focus on approaching each channel with a clear strategy. Streaming, especially ad-free tiers, offers data-driven targeting, while theaters offer cultural impact and immersive experiences. Strong campaigns will employ both, using streaming for precision and theaters for impact.