Nearly every major streaming service has raised its prices over the past 18 months, some multiple times. The most expensive plans are well over $20/month, and even the cheaper ad-supported tiers are no longer the deals they used to be. With streaming price increases far outpacing inflation, many households are now spending well above what they want to on streaming services. What’s the threshold for consumers in tolerating what’s worth paying for, and which services will get downgraded or cancelled?
Since 2018, Hub Research’s How to Monetize Video study has tracked how consumers navigate how they pay for TV services – how much consumers currently pay (and are willing to pay) for TV services, and which features offer the best value.
As users (especially younger users) are filling their time with more free video services (e.g. Tubi), including social and creator video (on YouTube, TikTok, etc.), the pressure for premium paid streaming services to stand out has only increased. Newly introduced sports streaming services are helping to attract and keep subscribers, but the fragmentation of sports content challenges subscriber loyalty. Impending industry consolidation (Hulu into Disney+, Paramount buying WBD) has positioned streamers to offer more attractively priced bundles and pricing, but the question still remains: how many services, and which ones, are enough?
Study findings will illuminate how consumers prioritize which TV services have greater perceived value compared to others.
Source: Interviews with 1,600 U.S. TV viewers with broadband access age 16-74
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