A majority of Americans would be willing to subscribe to a streaming platform if the price were lowered. — AFP Relaxnews
Is subscribing to one or more streaming platforms still worth it? According to a study by Deloitte, Americans are paying more and more to access SVOD content. However 36% of them feel that the films, series and shows on offer are not worth the dollars spent each month.
The average American household spends US$61 a month on four video-on-demand (SVOD) service platforms, according to a new study by Deloitte, entitled “Digital Media Trends, 18th edition: Streaming video at a crossroads”. This amount is 27% higher than the $48 monthly expenditure in 2023. But Americans may soon decide to cut their losses.
Almost half of those surveyed (48%) said they would cancel their subscription to their favourite streaming platform if the price went up by five dollars a month. Furthermore, over a third of Americans surveyed (36%) said that the platforms' catalogues were not worth the price of the subscriptions.
Despite their frustrations, Americans are cancelling their subscriptions in fewer numbers than they did a year ago. According to Deloitte, 40% of them have cancelled an SVOD service in the last six months, compared with 44% a year earlier. Young people were most likely to make such a choice (53% of Gen Z and Millennials).
The churn rate for major streaming services in the US (Apple TV+, Discovery+, Disney+, Hulu, Max, Netflix, Paramount+, Peacock and Starz) reached 6.3% in November 2023, up from 5.1% a year earlier, according to data from subscription analytics provider Antenna, cited by Business Insider. What’s more, around a quarter (24%) of subscribers have cancelled at least three of their subscriptions in the last two years, compared with 15% in November 2021.
"Streaming services have reached a pivotal moment," said Jana Arbanas, vice chair, Deloitte LLP and US telecom, media and entertainment sector leader. “Delivering great content is no longer enough – curating a more personalised experience designed to better match content with personal preferences and interests is the next step.” – AFP Relaxnews
*These findings are based on an online survey of 3,517 US consumers conducted in October 2023. Throughout this report, generations are referenced. Deloitte's definitions of generations are as follows: Generation Z (1997-2009), Millennials (1983-1996), Generation X (1966-1982), Baby Boomers (1947-1965) and Matures (1946 and earlier). The survey was conducted by an independent research company, and all data is weighted according to the most recent census to give a representative picture of American consumers.
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