United States: a widespread increase in SVOD prices, senseless according to some subscribers
According to a Deloitte survey, Americans are spending more to access streaming video content on demand. However, 36% believe that the quality of the content offered (films, series and shows) does not justify these monthly expenses and above all, the SVOD price.
These findings stem from an online survey conducted in October 2023 among 3,517 American consumers. They offer an interesting insight into the points of view and behavior of different generations of subscribers.
The data shows that perceptions vary by age. While older generations may be more critical of the value of content, younger generations, such as Generation Z, seem more likely to view these subscriptions as worthwhile investments.
American household: $61 average spending on streaming platforms
The Deloitte study is titled Digital Media Trends, 18th edition: Streaming video-at-a-crossroads. According to his observations, a American home today spends about $61 a month for four streaming platforms. This average has notably increased by 27% compared to the 48 dollars of monthly expenses in 2023.
This significant increase raises questions about this inflationary trend. Indeed, consumers may well be tempted to reconsider their subscriptions in the face of such an increase in SVOD prices and, intrinsically, their entertainment budget.
This evolution highlights the need for streaming services to maintain a compelling value proposition that can justify these increasing expenses. They must also adapt to changing consumer preferences to maintain their subscriber base.
A good majority of Americans agree with the idea of continuing to subscribe to a streaming platform if the price is lowered – Skynesher Photography/Getty Images
Nearly half of Americans are considering cancellation
Still according to the study carried out, American consumers say they refuse to support the increase in SVOD prices. In fact, almost half of the participants (48%) are consideringcancelation of their subscription to their preferred streaming platform if prices increased by only five dollars per month.
This trend is further supported by the fact that a significant percentage, i.e. 36% of those questioned, believe that the platforms’ content catalogs do not justify the exorbitant cost of subscriptions.
These figures highlight the importance for streaming content providers to maintain competitive prices while offering attractive libraries of films, series and shows. It’s their unique ticket to retaining subscribers and remaining competitive in an ever-changing market.
Subscriptions: fewer cancellations despite the increase in prices
Although exasperated by the situation, the Americans seem visibly less inclined to cancel their subscriptions compared to the year 2021.
As Deloitte reports, 40% of them have canceled with a streaming platform in the last six months. This is slightly less compared to 44% a year ago. Young viewers are very concerned by this trend (53% of Generation Z and Millennials).
According to data from Antenna, a subscription analytics provider, the churn rate for major streaming services in the United States increased to 6.3% in November 2023. A year earlier, it was 5.1%. . In addition, 24% of subscribers have canceled at least three of their subscription contracts in the last two years. This increased significantly from 15% in November 2021.
Focus on improving the user experience to retain subscribers
Jana Arbanas, vice chairman of Deloitte and head of the US telecommunications, media and entertainment sector, says streaming services are a crucial turning point in their growth.
It’s high time for video content providers to stand out. Arbanas insists on the fact that today we must offer much more than a catalog of quality content.
From now on, platforms must offer user experience more personalized, adapted to the individual preferences of the spectators. This personalized approach is essential to keeping subscribers engaged in an increasingly competitive media landscape.
What about the services offering the best video content?
Reelgood, an online content choice guide, shared a comparative study evaluating the main streaming platforms of 2024 according to their quality-price ratio. For this, it was based on the IMDb criteria.
From this comparison, he knows that Prime Video stands out with the best catalog of films. Amazon’s service offers 437 very good quality films and 2407 good quality films out of a total of 11,923. On the other hand, Apple TV+ is lagging behind in terms of cinema content. For TV shows, Disney’s Hulu comes out on top with 1,762 shows, including 283 of very good quality.
However, this study has limitations, notably by neglecting the video content with less than 300 reviews. And despite its mixed results in the study, Apple TV+’s recent SAG Awards nominations highlight its commitment to producing quality content.
With ETX Daily Up
