Streaming Services Perceived as Valuable Yet Economic Worries Loom Large Among Consumers
In the wake of the pandemic, American consumers have found themselves in a cautious state regarding their spending, with the 2022 inflation spike leaving a lasting impact. According to a recent survey by Hub Entertainment Research, this economic strain has made consumers more sensitive to price hikes on streaming video subscriptions, affecting their willingness to maintain multiple subscriptions or absorb significant cost increases.
The survey, titled "TV Advertising: Fact vs. Fiction," was conducted among 3,000 U.S. consumers age 14-74 who watch at least one hour of TV per week. The findings reveal that viewers are sensitive to the frequency of subscription TV rate increases and are considering canceling subscriptions or switching to lower-cost, ad-supported offerings.
The report also indicates that streaming video is more resistant to consumers' cost-cutting than other entertainment. Half of those YouTube users regularly view the content on a TV, and usage of YouTube services (free, YouTubeTV, YouTube Premium) is almost universal, with just under nine in ten viewers watching or subscribing.
Interestingly, the survey found that viewers perceive TV and movie streaming subscriptions to be a better value than most other entertainment alternatives, apart from vacations. This suggests that while consumers may be cutting back on discretionary expenses, they still value their video subscriptions.
However, the survey also shows that consumers are expressing more concerns about the rate of inflation and the possibility of a recession. Over half of TV viewers would consider spending more on video subscriptions if it meant they could reduce spending on other entertainment.
Service aggregators like Amazon Prime Video, AppleTV, Roku, or YouTube have become important players within the video marketplace. Half of all viewers use an aggregator to organize their streaming subscriptions, and among viewers age 18-34, that figure rises to six in 10.
The half of the TV audience that uses a service aggregator has a considerably higher number of TV subscriptions, with nearly six in 10 having six or more. This trend of multiple subscriptions is particularly prevalent among younger viewers, with the survey indicating that a growing number of ad-intolerant consumers express a preference for saving $4-5 per month on subscriptions with ads compared to an ad-free service at a higher price.
Despite the economic challenges, viewers are sensitive to the frequency of subscription TV rate increases and are considering canceling subscriptions or switching to lower-cost, ad-supported offerings. However, the survey found that viewers are even more concerned about the reemergence of inflation and the possibility of a recession in the current environment.
In conclusion, the findings of Hub Entertainment Research's survey align with the broader industry understanding that economic pressures post-pandemic have made U.S. consumers more price-conscious regarding streaming video services, affecting their attitudes toward subscription costs and increases. The survey results suggest that while consumers may be cutting back on discretionary expenses, they still value their video subscriptions, particularly those offered by YouTube.
- American consumers, due to the pandemic's economic impact and the 2022 inflation spike, are more sensitive to price hikes on streaming video subscriptions, affecting their willingness to maintain multiple subscriptions or absorb significant cost increases.
- The survey titled "TV Advertising: Fact vs. Fiction" shows that viewers are considering canceling subscriptions or switching to lower-cost, ad-supported offerings in response to the frequency of subscription TV rate increases.
- Streaming video services like YouTube are more resistant to consumers' cost-cutting compared to other entertainment, with half of YouTube users regularly viewing content on a TV, and usage of YouTube services being almost universal.
- Consumers perceive TV and movie streaming subscriptions to be a better value than most other entertainment alternatives, apart from vacations, signifying that while they might be cutting back on discretionary expenses, they still value their video subscriptions.
- Service aggregators such as Amazon Prime Video, AppleTV, Roku, or YouTube have become essential players in the video marketplace, with half of all viewers using an aggregator to organize their streaming subscriptions, and this figure rising to six in 10 among viewers age 18-34.
