There appears to be a ceiling to the number of TV and video services that viewers would want to subscribe to, and consumers might be approaching that ceiling, according to a report from Hub Entertainment Research. Even so, more viewers are upping their spending on video services than decreasing their outlays, per the report.
Almost 8 in 10 (78% of) survey respondents reported that they have a maximum number of services they’d want to use, and that figure includes 43% who said they’ve already reached that number. Those respondents who say they’ve reached their limit of subscriptions are using an average of 7.3 different TV sources. By comparison, the 22% of viewers who say they have no maximum are using about one less subscription, averaging 6.5, while those who have a maximum in mind but haven’t yet reached it say that the most they’d want to use is 7.
The majority of respondents yet to reach their maximum number of subscriptions may explain why spending on TV continues to rise. In this latest survey, 44% said they’re spending either much more (14%) or a little more (30%) than a year ago, compared to just 13% who said they’re spending a lot less (5%) or a little less (8%). Additionally, the share who report spending more has risen from 2020 (35%).
Nonetheless, cost is a critical factor in the video streaming market, and this latest report indicates that low price is the attribute that is most important to consumers when deciding on the value of a streaming service. Interestingly, ad-free and ad-supported versions of platforms such as Netflix, Hulu, and Disney+ tend to perform similarly in terms of value perception among subscribers. However, specific FAST services – which have grown in popularity – have the highest perceptions of value, with Tubi and Pluto topping the list, ahead of Max and Discovery+.
Even so, users of ad-free platforms are on average more likely to say they’ll have their service a year from now (78%) than users of ad-supported services (71%).
Finally, the report finds that 42% of viewers have cancelled at least one TV subscription within 6 months of signing up. This figure is higher among respondents ages 16-24 (58%) and among those with kids in the household (53%), and the likelihood of short-term churn also rises alongside the number of paid subscriptions held.
For more, download the executive summary here.
About the Data: The report is based on a June survey of 1,602 consumers ages 16-74 who watch at least 1 hour of TV per week and have broadband at home.
Source: marketingcharts.com
