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The pay-TV and streaming markets are set to take a hit as the ongoing and likely to get worse cost-of-living crisis in the UK drives consumers to rethink and prioritise spending says a report from EY.
Sky BT 21Feb2020
Based on the views of 2,500 households in the UK, the Decoding the Digital Home, set out to explore how the pandemic, the cost-of-living crisis, and evolving connectivity needs were and are impacting how comfortable consumers are in the digital home.

The basic conclusion was that UK homes are concerned by rising home technology costs amid the cost-of-living crisis with a significant majority fearing price rise in broadband and entertainment bundles, observing that service providers aren’t doing enough to help consumers with the best value: Specifically, 43% of UK households believe they are paying too much for content they don’t consume, and more than half of households are concerned that their broadband provider (61%) and TV provider (49%) will increase subscription rates.

In addition to the cost-of-living crisis. the study also found that people wanted to spend less time online since the pandemic. The study also indicated that digital usage was normalising, with many looking to downsize their online exposure. Just over a third (35%) planned to spend less time online, 27% wanted to cut the number of streaming platforms they use, and 24% were open to reducing the number of connected devices in their homes.

Consumers felt service offerings were too complex. Just over a third (35%) found it difficult to understand digital home packages on offer, and 40% saw very little difference between competing providers. Similarly, while more than half (49%) of consumer respondents say introductory offers play a role in their supplier choices, 54% indicated that they make it difficult to determine who offers the best value. At the same time, 62% of UK households believe that broadband reliability is more important than speed.

Connectivity and content providers must make their packages easier to interpret and understand,” warned Adrian Baschnonga, EY global technology, media and telecoms lead analyst assessing the trends revealed in the Decoding the Digital Home study. “Clearly underlining the value they offer is essential during a period of unprecedented pressure on household spending. Better levels of service and support will also help companies build more trusted and enduring relationships with their customers, reducing the risk of churn.”