A new study from cloud video platform provider Grabyo has revealed the massive problems facing the global pay-TV industry in 2020 with almost three-quarters of global video customers planning to cut the cord and stop paying for pay-TV services within five years.
Grabyo’s Value of Video Report 2020: The Consumer Strikes Back used data from 13,000 consumers across 11 territories including the UK, France, Germany, Italy, Spain, US, Brazil, Argentina, Thailand, Japan and Australia. It asked consumers about their spending habits on TV and video services, how they value subscriptions, and future plans to pay for video.
The key finding was that as the streaming wars begin to take shape in 2020, the global penetration of online streaming has reached 55% of consumers, surpassing pay-TV adoption at 50%. Of the global consumers who plan to stop paying for pay-TV, or have already cut the cord, 26% reported the number one reason was the price of services. Streaming was found to be more affordable and more attractive.
Ultimately the report revealed that choice of what to watch, flexible subscription options and a low price point meant that consumers were looking to spend smaller amounts on multiple services tailored to their interests. Grabyo believes that this ceiling on monthly video spend indicates that consumers may be willing to subscribe to up to four or five online video services, if the price is right.
The growing popularity of streaming was highlighted in the subscription to multiple services, with 28% of UK customers subscribing to two or more online video services. This compares with 35% of consumers in the US, and 32% across Europe with multiple online streaming subscriptions.
The report also found that almost two-thirds of UK consumers spend up to £20 per month on video services while 30% of UK customers report that all their video spend is for online streaming services. In the UK, 40% of consumers state they are willing to pay up to £35 per month for online video services, this rises to 47% in the U.S, that are willing to pay up to $35 monthly.
The impact of the recently launched direct-to-consumer services from Disney, Apple, NBC Universal and WarnerMedia (HBO) was also reflected in consumer feedback in the report. It found that 13% of UK video customers plan to subscribe to the new Disney+ service when it launches in March this year, and in the US 24% of consumers have already signed up to the service, more than 28 million customers.
Netflix though was by far the dominant player on a global basis. It has reached 71% penetration in the UK market, 66% in the US and a combined 53% across the rest of Europe’s ‘big five’ markets. Amazon Prime Video has reached 44% of the UK market, 42% in the US and 40% across the rest of Europe’s big five.
Grabyo’s study additionally highlighted the rapid growth in online streaming subscriptions across older demographic groups. Since 2019, online video subscriptions have grown 63% in the 65+ age group.
“2020 will be the year we see the true impact of the streaming wars on viewing habits and what this means for the wider video industry,” said Gareth Capon, Grabyo CEO, commenting on the Value of Video Report 2020: The Consumer Strikes Back.
“Broadcasters, rights holders and publishers need to cater to an audience that is moving away from traditional TV. Flexibility, access and price are important to consumers, which means delivering a multi-platform video strategy that reflects these needs. The transition to cloud services will support this shift, but these changes need to accelerate. Our latest report shows streaming is no longer just for younger demographics, the viewing preferences of all consumers are beginning to align.”
The key finding was that as the streaming wars begin to take shape in 2020, the global penetration of online streaming has reached 55% of consumers, surpassing pay-TV adoption at 50%. Of the global consumers who plan to stop paying for pay-TV, or have already cut the cord, 26% reported the number one reason was the price of services. Streaming was found to be more affordable and more attractive.
Ultimately the report revealed that choice of what to watch, flexible subscription options and a low price point meant that consumers were looking to spend smaller amounts on multiple services tailored to their interests. Grabyo believes that this ceiling on monthly video spend indicates that consumers may be willing to subscribe to up to four or five online video services, if the price is right.
The growing popularity of streaming was highlighted in the subscription to multiple services, with 28% of UK customers subscribing to two or more online video services. This compares with 35% of consumers in the US, and 32% across Europe with multiple online streaming subscriptions.
The report also found that almost two-thirds of UK consumers spend up to £20 per month on video services while 30% of UK customers report that all their video spend is for online streaming services. In the UK, 40% of consumers state they are willing to pay up to £35 per month for online video services, this rises to 47% in the U.S, that are willing to pay up to $35 monthly.
The impact of the recently launched direct-to-consumer services from Disney, Apple, NBC Universal and WarnerMedia (HBO) was also reflected in consumer feedback in the report. It found that 13% of UK video customers plan to subscribe to the new Disney+ service when it launches in March this year, and in the US 24% of consumers have already signed up to the service, more than 28 million customers.
Netflix though was by far the dominant player on a global basis. It has reached 71% penetration in the UK market, 66% in the US and a combined 53% across the rest of Europe’s ‘big five’ markets. Amazon Prime Video has reached 44% of the UK market, 42% in the US and 40% across the rest of Europe’s big five.
Grabyo’s study additionally highlighted the rapid growth in online streaming subscriptions across older demographic groups. Since 2019, online video subscriptions have grown 63% in the 65+ age group.
“2020 will be the year we see the true impact of the streaming wars on viewing habits and what this means for the wider video industry,” said Gareth Capon, Grabyo CEO, commenting on the Value of Video Report 2020: The Consumer Strikes Back.
“Broadcasters, rights holders and publishers need to cater to an audience that is moving away from traditional TV. Flexibility, access and price are important to consumers, which means delivering a multi-platform video strategy that reflects these needs. The transition to cloud services will support this shift, but these changes need to accelerate. Our latest report shows streaming is no longer just for younger demographics, the viewing preferences of all consumers are beginning to align.”
