Nearly half (49%) of American users of paid video streaming platforms would stop using them if the price of subscriptions increased, according to the results of a study conducted in the United States by the consulting company Deloitte and published on Wednesday by Deloitte Romania , writes Agerpres.
Thus, price sensitivity is a key factor for users of entertainment services, 49% of customers of video streaming platforms, 38% of users of video game platforms and 37% of customers of audio content platforms mentioning that they would stop also use them in case of higher subscription prices, it is mentioned in the Deloitte analysis.
Also, for almost half (46%) of respondents to the Deloitte Digital Media Trends 2021 study, cost is the most important factor in deciding to subscribe to a video streaming service. Of these, 55% decide to use video streaming services that are financially supported by advertising, according to Deloitte’s analysis.
The document shows that the second important factor in the decision of consumers to subscribe to a video streaming service is the content, essential for 35% of respondents.
In this context, Deloitte highlights strong competition among providers, with users of video streaming services having an average of four subscriptions, users of paid audio streaming services having an average of two subscriptions, and those of video game platforms three subscriptions.
On the other hand, 52% of respondents find it difficult to access content through so many platforms, 66% are frustrated when the content they want to view is no longer available on one platform and 49% are unhappy when a platform does not make relevant recommendations to them.
The share of users who terminate their subscriptions to video streaming services remained at about 37% between October 2020 and February 2021, according to the Deloitte analysis.
In this context, the coordinating partner for Risk Consulting and Management at Deloitte Romania, Andrei Ionescu, stressed that streaming service providers will focus on customer loyalty.
“The share of customers who terminate their subscriptions has long been an important factor on the agenda of players in the telecommunications industry and, as a result of the effects of the COVID-19 pandemic, the media and entertainment industry now faces the same challenge. In this context, providers will focus on customer retention, create personalized and unique user experiences, and intensify their efforts to provide relevant content, such as was the case of Netflix, which broadcast free educational content on its own Youtube channel in the context of the closure of schools due to the pandemic, or HBO Max, which released films on the platform on the same day they debuted in cinemas, “said the coordinating partner for Consulting and Risk Management at Deloitte Romania.
On the other hand, the Deloitte analysis also highlights that the pandemic has amplified the appetite of users of all generations for video games. Exponents of Generation Z (87%), Millennials (83%) and Generation X (79%) say they access video games on devices such as smartphones, game consoles or computers at least weekly, which has helped them stay connected with other people and overcome difficult times, according to the document.
The Deloitte study points out that listening to music is one of the top three favorite activities of all generations, with 60% of respondents using a paid audio streaming service, while the same share of users access a free audio streaming service.
For those who pay a monthly subscription, audio content was the main factor in the decision to subscribe to such a service, followed by its use without advertising breaks and reasonable prices. For those who use a free audio streaming service, the lack of costs was the main factor in the decision, followed by the ease with which they access the service and the wide range of content.
The Deloitte Digital Media Trends 2021 survey was conducted among more than 2,000 consumers in the United States.
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