Pay-TV Continues to Lag Streaming Services in Value Perception

July 30, 2020

This article is included in these additional categories:

Demographics & Audiences | Digital | Industries | Media & Entertainment | Pay-TV & Cord-Cutting | Television | Video | Youth & Gen X

HubEntResearch Value Ascribed to TV Video Services Jul2020There’s no shortage of options when it comes to subscription video-on-demand services (SVOD). And, while some Americans opt to subscribe to only pay-TV or SVOD, more than half (54%) subscribe to both. But do customers feel like they are getting value for their money? Here’s what a new study [excerpt download page] from Hub Entertainment Research found.

For the most part, the more than 2,000 US consumers surveyed feel the value of SVOD services is high. Netflix ranked highest, with nearly three-quarters of its users saying that the service is an excellent (34%) or good (39%) value. Seven in 10 users of both Hulu and Disney+ rate these services an excellent or good value, though slightly more users felt that Disney+ was an excellent value (37%) than those who felt the same about Hulu (34%).

A majority of users also rated Amazon Prime Video’s (69%) and Apple TV+’s (62%) value excellent or good, with the same share (27%) saying each service was an excellent value.

Respondents are less impressed with the value of buying/renting shows or movies to stream, or with the value of traditional pay-TV. Some 44% felt that buying or renting shows to stream was a good (15%) or excellent (29%) value, and even fewer rated the value of traditional pay-TV excellent (14%) or good (28%).

Although consumers feel that, for the most part, they are getting value for their services, there is still a discrepancy between what they think is reasonable to spend on TV services each month and how much they are actually paying. As a whole, respondents felt that it was reasonable to spend about $72 per month on services. However, they currently spend an average of $94.

The gap is much narrower when looking at cord-cutters or cord-nevers. Hub Entertainment Research found that those consumers only subscribing to streaming services (with no pay-TV) felt it was reasonable to spend $54 per month, while paying about $60. This is despite prior research indicating that only two-fifths of SVOD consumers were willing to spend more than $20 per month on these services.

It may not just be pay-TV that is under threat of SVOD services. More than 6 in 10 (63% of) young adults (ages 18-34) say they would definitely or probably pay to stream a movie that is being released in theaters at the same time. That said, only 12% of adults ages 35 and older report that they would probably pay to stream a movie that was currently in theaters.

This trend of younger people preferring to view a movie via streaming services can also be seen in recent research [pdf] from Hollywood Report and Morning Consult, where 58% of adults ages 18-34 said they prefer to watch a newly released movie at home via a streaming service.

An excerpt of the report can be found here.

About the Data: Results are based on a survey of 2,036 US consumers with broadband, ages 16-74, who watch at least 1 hour of TV per week. The survey was fielded in June 2020.


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