(Image credit: Momentive Market Research Solutions)
Source: www.tvtechnology.com, November 2021

Price and subscription fatigue are the leading reasons for cancelling a streaming service as 38% of consumers now spend $25+ on streaming, according to a new Momentive survey

SAN MATEO, Calif—As spending on streaming services continues to rise and costs become a major factor in the decision to drop services, a new survey and analysis by Momentive Market Research Solutions reports that the optimal price for SVOD services is about $11.

A Van Westendorp Price sensitivity analysis run using Momentive Market Research Solutions “determined that consumers are most willing to pay between $11 to $16 for a streaming service, with $11 being the optimal price,” Sam Gutierrez reported in a blog post on the survey. “However, we see that there is minimal change in demand between the $11 and $14 price point, illustrating potential for a price point that falls within that range.”

The survey also found that 38% of respondents were spending more than $25 a month on streaming services in November of 2021, up from 23% in October of 2019 and that 29% were paying $25 to $99.99 a month, up from only 20% in October of 2019.

This was making consumers much more cost sensitive, with 28% of U.S. subs cancelling at least one service in the last month. Higher costs (38%) and too many subscriptions (17%) were cited as the two main reasons for dropping a service.

Another 15% said they planned to cancel a service in the next month.

Streaming remained very popular according to the survey data, with 50% reporting they were streaming more, but only 6% said they were streaming about the same amount and 43% reported they were spending less time streaming in September of 2021.

Netflix continued to be the top streaming service, with 59% saying they subscribed, followed by Amazon (43%) and Hulu (32%).

About 27% reported spending 11 or more hours a week watching streaming services, with 43% reporting watching one to five hours and 31% six to 10 hours a week.

The survey also highlighted ongoing bad news for cable TV. Only half (50%) of respondents reported having a cable or satellite TV subscription and another 28% said they used to have one but cancelled. The survey also found that 39% were very likely (14%) or somewhat likely (20%) to cancel their pay TV subscription.

More data and information on the survey is available here.