Survey says: Subscribers have more room to spend
New study reveals consumers are willing to pay an average of $11 more per month
With the November launches of Apple TV+ and Disney+, the market for streaming TV services has gotten even more crowded. And more expensive for consumers.
But, despite talk of “subscription fatigue,” or consumers’ unwillingness to spend more on new streaming services, a new study says that the average American
is still willing to pay even more for streaming TV options.
According to a survey by KPMG, consumers currently pay an average of $22 a month for their various streaming TV services. But, even paying that amount, KPMG found that consumers are willing to spend up to an average of $11 more every month for streaming television, and most say they have no problem tacking on even more to their monthly streaming
TV viewing bills.
“Across (all) age groups, the majority of people subscribe to two or three video services, and currently pay under $40 for their combined subscriptions,” said Michelle Wroan, KPMG national media sector team leader. “When considering additional streaming services, most would be willing to increase (spending) up to $20 (a month).”
The survey, which included 1,030 consumers between the ages of 18 and 24, and 1,025 consumers aged 25 to 60, found that 52% of the younger group, and 67% of the older respondents said price is the top factor in choosing a streaming TV option. Almost 70% of those surveyed aged 18 to 24, and nearly 80% of those surveyed from the ages of 25 and 60 said they spend between $10 and $40 a month for their streaming services.
Among some of the more well-known streaming companies, Netflix starts at $8.99
a month, and its most-popular subscription plan costs $12.99 a month. Hulu charges $5.99 a month to stream TV shows and movies with ad, and can go up to $50.99 a month for an option that includes live TV channels. Amazon includes its Prime Video service with its Prime delivery service for $12.99 a month, or $119 a year.
Apple TV+, which debuted on Nov. 1, costs $4.99 a month, but consumers can get a free year’s-worth of service with the purchase of an iPhone or other Apple product. Disney charges $6.99 a month, or $69.99 a year, for Disney+, and also offers a bundled package of Disney+, ESPN+ and Hulu with ads for $12.99 a month.
Along with price, and an overall willingness to spend more per month, consumers listed a service as being adfree, content of a service, ease of access to a service and the ability to watch content over multiple devices as top factors in choosing whether or not to subscribe to a streaming TV option.
KPMG’s survey also showed what appeared to be a generational difference in how consumers prefer to stream their TV services. For 18 to 24-year-olds, 41% said they use their smartphone as their main method of watching streaming video content, while 65% of 25 to 60-year-olds said the TV, whether it’s a Smart TV or one with a connected device like a Roku or Apple TV, is how they stream TV programming.