By Jonathan Easton
US consumers are becoming increasingly cost-concerned with their streaming spend, a new report has found.
According to The NPD Group, from October 2021-April 2022, cost went from the fourth most-cited reason for cancelling an SVOD subscription to the second.
The report also found that promotional offers and discounted fees are more heavily influencing consumer decisions. Despite an industry shift away from free trials, they were cited as the number one reason for SVOD users signing up to a service, while discounts and promotional offers moved up four spots from October 2021.
Elsewhere the report compared the consumer behaviours between those paying for a premium ad-free experience and those paying for an ad-supported service, with the former engaging more frequently. Some 28 per cent of ad-free subscribers said they use the service every day or most days, vs. 20 per cent of the ad-supported subscribers.
Executive director, industry analyst at NPD, John Buffone said: “In the last several months consumers have had to navigate rising prices in many facets of their lives and SVOD services are part of that mix with companies like Netflix and Amazon raising their subscription rates.
“While cost considerations in SVOD services are still dramatically lower than in cable and satellite TV, it is important for providers to recognise that price sensitivity is growing so they can adjust their offerings to retain their subscriber base.”
In all of this however, content remains important. One-third of SVOD users said they were incentivised to sign up knowing that a specific TV show or movie was on a service.
