Streaming Services Perceived as Valuable by Consumers, Yet Economic Concerns Remain Pervasive
Article Title: Consumers Cautious Towards Subscription Price Increases Amid Economic Uncertainty
In a recent survey by Hub Entertainment Research, consumers have expressed concerns about the economy and the impact of rising prices on their streaming video subscriptions. Mark Loughney, a Senior Consultant at Hub, stated that consumers are still feeling the aftermath of the pandemic's economic disruption and are becoming more anxious.
The survey, titled "TV Advertising: Fact vs. Fiction," reveals that consumers see strong value in streaming video but are very concerned about the economy. Many consumers are sensitive to price increases and are more likely to cut higher-priced streaming subscriptions, opting instead for cheaper, ad-supported streaming plans to manage costs.
The findings suggest that rising economic uncertainty and volatility are negatively impacting consumer sentiment towards subscription price increases on streaming video services. Consumers are increasingly shifting from higher-priced pay TV and premium subscription plans to ad-supported streaming options (FAST and AVOD) as a way to afford multiple services while managing expenses during economic uncertainty.
The typical streaming household subscribes to approximately 5.7 paid streaming services, but economic pressures are driving a more careful selection and possible pruning of costly subscriptions. Service aggregators like Amazon Prime Video, AppleTV, Roku, or YouTube have become important players within the video marketplace, with half of all viewers using an aggregator to organize their streaming subscriptions. Among viewers age 18-34, six in 10 do so.
The report also indicates that viewers are keeping a close watch on their spending and streaming video price increases. More than half of TV viewers would consider spending more on video subscriptions if it meant they could reduce spending on other entertainment. However, providers should be cautious about price increases, as viewers will consider canceling services if they are no longer receiving value.
YouTube content is appreciated by viewers, especially its free ad-supported offering, which leads not only paid subscription sources like AVOD and SVOD for value delivered, but it also comes out ahead of other free sources like FASTs and over-the-air broadcast. Usage of YouTube services (free, YouTubeTV, YouTube Premium) is almost universal, with just under nine in ten viewers watching or subscribing.
The post-pandemic economic strain and rising prices continue to affect U.S. consumers. Viewers are sensitive to the frequency of subscription TV rate increases during economic uncertainty. The report is part of the "Hub Reports" syndicated series, and a free excerpt of the findings is available on Hub's website.
In conclusion, while streaming is viewed as valuable, there is notable resistance or caution towards subscription price increases during the current economic uncertainty, pushing consumers towards more affordable, often ad-supported options. Consumers have expressed increased concerns about the economy, inflation rate, and the possibility of a recession from November 2024 through May 2025. Nearly six in 10 viewers who use a service aggregator have six or more video subscriptions, while 43% of those who do not use an aggregator have three or fewer subscriptions.
- Consumers, due to the economic uncertainty, are expressing concerns about the potential price increases in their streaming video subscriptions, according to a survey by Hub Entertainment Research.
- The survey suggests that consumers see value in streaming video, but are deeply concerned about the economy, with many being sensitive to price rises.
- In response to these economic pressures, consumers are more likely to choose cheaper, ad-supported streaming services to manage costs.
- During economic uncertainty, viewers are carefully selecting their streaming subscriptions, with a possibility of pruning costly ones, and service aggregators like Amazon Prime Video, AppleTV, Roku, and YouTube have become essential organizers.
- Consumers are watching their spending closely and would consider spending more on video subscriptions if it means reducing expenses in other entertainment areas, but they will also consider canceling services if they no longer perceive value.
- YouTube's free ad-supported offering is highly appreciated by viewers, leading in delivering value compared to other free sources like FASTs and over-the-air broadcast, with nearly universal usage.
