Even though over the time economic pressures have led to people to look for less costly options in TV the general perception of value of TV has not changed over the last three years says Hub Entertainment Research.
The analyst pointed to the fact that when Netflix launched its streaming platform in 2007, its brand was built around being the “anti-cable”: thousands of shows, on demand without commercials, for far less money than bloated cable bundles. And that over the last three years the TV industry has changed widely with consumers stacking more streaming subscriptions leading to a fundamental change in how to find and choose content.
Yet at the same time, changes in spending have been less dramatic. Hub calculated that between the 2019 and 2022, estimated monthly spend has only fallen by about $12. And the amount that people say is “reasonable” to pay has stayed the same.
“It’s not the price of TV that consumers have a problem with – they’re willing to pay handsomely for content they want to watch, said Hub principal and founder Jon Giegengack. “What they are no longer willing to do is to pay for content or providers that they don’t use.”
Indeed, Hub data found that the impact on perceived value from bundles with multiple channels that people did not use was predictable. It its Monetisation of Video study, 55% of pay-TV subs said their bundle was a “good” or “excellent” value – lower than any other type of subscription, and far behind the major streaming platforms.
Going forward Hub said that a focus on value would be be even more important as consumers worked their way through a recession, even though it noted such downturns can sometimes be a boon for home entertainment as consumers cut back on more expensive options outside the home. However it cautioned subscriptions perceived to represent poor value, or bundles that weren’t being used fully, would be more vulnerable as people seek to get the most out of every dollar.
Yet at the same time, changes in spending have been less dramatic. Hub calculated that between the 2019 and 2022, estimated monthly spend has only fallen by about $12. And the amount that people say is “reasonable” to pay has stayed the same.
“It’s not the price of TV that consumers have a problem with – they’re willing to pay handsomely for content they want to watch, said Hub principal and founder Jon Giegengack. “What they are no longer willing to do is to pay for content or providers that they don’t use.”
Indeed, Hub data found that the impact on perceived value from bundles with multiple channels that people did not use was predictable. It its Monetisation of Video study, 55% of pay-TV subs said their bundle was a “good” or “excellent” value – lower than any other type of subscription, and far behind the major streaming platforms.
Going forward Hub said that a focus on value would be be even more important as consumers worked their way through a recession, even though it noted such downturns can sometimes be a boon for home entertainment as consumers cut back on more expensive options outside the home. However it cautioned subscriptions perceived to represent poor value, or bundles that weren’t being used fully, would be more vulnerable as people seek to get the most out of every dollar.
