Streaming video users willing to pay 50% more for additional subscriptions | VOD | News | Rapid TV News
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Even though they already pay on average pay $22 a month for their services, video streaming subscribers are willing to pay an additional $11 a month for additional services according to a new report from KPMG.
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KPMG surveyed more than 2,000 subscribers, ages 18-24 and 25-60, to examine how people choose their video streaming services and the factors they deem most important. KPMG noted that consumers' growing use of streaming services has sparked massive investment by content providers and cited research from eMarketer predicting that 182.5 million people in the US or about 55% of the population, will watch content on subscription over-the-top services in 2019.

Price topped the list of the most important features for both demographic groups in selecting a streaming service. Consumers aged 18-24 ranked ad-free service a close second, followed by content, while 25-60 year olds listed content a distant second, followed by ease of access. “The fact that consumers are willing to pay 50% more, on average, provides a critical marker for providers as our study indicates a high degree of price sensitivity,” noted Michelle Wroan, KPMG national media sector leader.

Looking deeper at the survey results on pricing, just under 70% of respondents ages 18-24 and nearly 80% of those 25-60 currently pay $10-$40 per month for streaming subscriptions. Across age groups, when considering additional streaming services, most people would be willing to pay up to $20 more per month, while others would not be willing to increase their monthly spend at all. “Assuming the price is right, content remains a key differentiator, and that's why the major players have acquired content and lined up high-profile content production teams,” Wroan added.

About a third of the survey respondents said that a broad mix of content was a key consideration when choosing a video streaming service. After that, 18-24 year olds listed favourite older TV shows, while the 25-60 year olds ranked the movie library and original series second. As far as where they watch content, more 18-24 year olds (41%) use a smartphone most often to watch streaming content than any other device, and more 25-60 year olds (61%) watch most on TV, smart TVs and devices such as Roku and Apple TV.

Among subscribers who are aware of a new streaming service, the decision to add or drop services based on new offerings may come down to price. Just over a third of all 18-24 year olds (35%) would drop a current subscription in order to add a new one, seven percentage points more than those in the 25-60 year old category. Of the younger cohort, 32% would consider adding a new service to their current subscription mix, regardless of price while 22% would consider adding one to their current subscription mix, but would make that decision based on price. For 25-60 year olds these were 28% and, indicating a clear differential in price sensitivity, 33% respectively. A similar percentage, 11% and 10%, of both groups would not consider a new service.

The KPMG study comes at a time when Apple TV+ and Disney+ have launched in a blaze of glory and in the case of the latter a blaze of instant success. Furthermore, the KPMG findings arrive just as other research has indicated that streaming users are already showing signs of being overwhelmed by choice.