There is a significant increase in the prices of content on every video streaming platform across the US.
High costs, high churn rates(number of subscribers who cancel or don’t renew subscriptions), and competition from other media companies are still problems for streaming video services, and many American viewers still doubt if the cost of their subscriptions is worthwhile.
According to Deloitte’s 18th annual Digital Media Trends report, American households that subscribe to streaming video entertainment services reported spending $61 per month for four services on average. Compared to $48 per month in the survey from the previous year, that represents a 27% increase.
In the most recent report from Deloitte, churn has somewhat decreased but is still quite high: 40% of customers reported cancelling any VOD subscription service. The survey found that:
- 67% of participants desire the ability to search for content across multiple services in a streaming bundle;
- A monthly customizable service bundle is what 63% of respondents desire.
- If content was more easily accessible, 47% of respondents stated they would use streaming video platforms more frequently.
- More than half of Gen Z and Millennial viewers claim that social media provides them with better recommendations for what to watch than do streaming services.
Below are some additional insights from the Deloitte’s analysis:
- Human or AI –
- 70% of respondents would prefer to watch a TV show/movie written by a human,
- 22% are interested in generative AI content.
- Of those surveyed, 42% said both forms can deliver entertaining content.
- Content Creator or Ads –
- 55% of Gen Z and millennial respondents learn about new game titles from live-streamers and content creators on social media,
- 49% watch TV series/movies after hearing from creators online.
- 54% claimed that social media advertisements have the biggest influence on them.
- 60% of Generation Z prefers to watch user-generated content (UGC) without wasting time looking for content.
- Creative work –
- More than half of Asian, Multiracial, and Hispanic consumers as well as nearly 70% of Black consumers in the survey want diverse creative teams to write & produce TV series and motion pictures.
- Social Media –
- Of those polled, about 42% stated that social media videos are “much more” diverse than TV series.
- Among Gen Z, this number is 60%, and among multiracial, Black, LGBT, and Hispanic respondents, it is over 50%.
- Gamers –
- Approximately 60% of those polled said they play video games for nine hours a week on average
- Among male gamers, 30% believe bullying is a normal part of the experience, compared to just 19% among female gamers.
Participating in the streaming era has become increasingly costly in recent years as the competition in the streaming TV and movie business has grown. Excellent television programs and films are more in demand than ever, which drives up their cost.
Disney has increased its investment in streaming, which has resulted in price increases for Disney Plus, Hulu, and ESPN Plus. Almost every service you can think of, including Paramount Plus, Peacock, Shudder, and Starz, costs more per month than it did a few years ago.
Businesses are searching for every opportunity to increase their profitability. In an effort to save money on taxes, they are putting a stop to password sharing, cancelling shows, and even selling their highly valued content to other platforms. But charging you, the viewer is the most popular tactic.
The price hikes in video streaming services are making it a burden rather than an entertainment service for consumers around the world. If prices are not reduced or controlled then it will eventually decrease the profit of companies. So there must be a reasonable price for streaming services.
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