(TNS) — Since cutting the cord, many U.S. audiences have turned to streaming video services. But is the price of their subscriptions worth the continued rising costs?
With the constant competition the streaming services take part in, in addition to the churn on multiple platforms, is it worth the headache every month?
On average, households nationwide who are subscribed to streaming video entertainment services are spending $61 per month for four services, according to Deloitte’s 18th annual Digital Media Trends report.
That price is up 27% from $48 per month from a 2023 survey.
Within the survey, just over 36% of those surveyed said the content available on streaming video services is not worth the price, while 48% of participants said they would cancel their favorite subscription VOD service if monthly prices went up by $5 per month.
When it comes to Deloitte’s latest report, churn eased up a bit but is still high, as 40% of consumers said they’ve canceled a subscription VOD service in the previous six months, which is down from 44% from last year.
The survey also found that 67% of participants are looking for a streaming bundle to search for content across multiple services; 63% want a bundle of services they can customize each month; and 47% of participants said they would spend more time streaming video platforms if content was easier to find.
As for Gen Z (born 1997-2009) and millennial (1983-1996) consumers, more than half have said they find out what to watch through social media than the streaming services themselves.
“Streaming services have reached a pivotal moment,” Jana Arbanas, vice chair at Deloitte and U.S. telecom, media and entertainment sector leader said, per Variety. “Delivering great content is no longer enough — curating a more personalized experience designed to better match content with personal preferences and interests is the next step.”
“It’s important to recognize that social media is the primary way people discover and get excited about entertainment. For content to resonate and drive engagement with consumers, streaming video providers should work to ensure their content connects with their diverse audiences and fosters a sense of community and social connectivity,” she added.
Other findings from the report include that almost 70% of Black consumers surveyed — and more than half of Asian, multiracial and Hispanic consumers — value television shows and movies written and produced by diverse creative teams.
The study has also found that 42% of those surveyed said videos on social media are “much more” diverse than TV and movies, which is 60% among Gen Zs and over 50% among multiracial (57%), Black (56%), LGBT (55%) and Hispanic (53%) respondents.
