Streaming video services continue to face challenges like high costs, high churn rates and competition from other media — while a good chunk of U.S. audiences still questions whether the price of their subscriptions is worth it.
On average, Americans households that subscribe to streaming video entertainment services said they spend $61 per month for four services, according to Deloitte’s 18th annual Digital Media Trends report. That’s up 27% from $48 per month on last year’s survey.
Price hikes in the category may be near their breaking point, the survey indicates: Just over one-third (36%) of those surveyed said the content available on streaming video services is not worth the price. And nearly half (48%) of respondents say they would cancel their favorite subscription VOD service if monthly prices went up by $5 per month.
According to Deloitte’s latest report, churn has softened a bit but still remains high: 40% of consumers said they canceled any subscription VOD service in the previous six months down from 44% last year. The survey found that 67% of respondents want a streaming bundle to be able to search for content across all multiples services; 63% want a bundle of services that they can customize each month. about 47% of consumers surveyed said they would spend more time on streaming video platforms if content was easier to find. More than half of Gen Z and millennial consumers say they get better recommendations for content to watch from social media than from streaming services themselves.
“Streaming services have reached a pivotal moment,” said Jana Arbanas, vice chair at Deloitte and U.S. telecom, media and entertainment sector leader. “Delivering great content is no longer enough — curating a more personalized experience designed to better match content with personal preferences and interests is the next step.”
She added, “it’s important to recognize that social media is the primary way people discover and get excited about entertainment. For content to resonate and drive engagement with consumers, streaming video providers should work to ensure their content connects with their diverse audiences and fosters a sense of community and social connectivity.”
Other findings from the Deloitte report:
- 42% of those survey said generative AI and humans can both deliver entertaining content; 70% of those surveyed say they would rather watch a TV show or movie written by a human — while 22% said generative AI could produce content that was more interesting than human creators.
- Among Gen Z and millennial respondents, 49% watch TV shows and movies after hearing about them from creators online and 55% find out about new game titles from live-streamers and content creators on social media. In addition, of this group, 54% said ads on social media influence them the most.
- 60% of Gen Zs prefer watching UGC videos because they do not have to spend time searching for what to watch.
- Nearly 70% of Black consumers surveyed — and more than half of Asian, multiracial and Hispanic consumers — say it’s important to them that TV shows and movies are written and produced by diverse creative teams.
- about 42% of those surveyed said videos on social media are “much more” diverse than TV shows and movies; that figure is 60% among Gen Zs and over 50% among multiracial (57%), Black (56%), LGBT (55%) and Hispanic (53%) respondents.
- about 60% of those surveyed spend an average of nine hours per week playing video games; 30% of men who play games consider bullying to be part of the experience, but only 19% of women gamers surveyed feel the same way.
Deloitte’s 18th annual Digital Media Trends survey was fielded by an independent research firm in October 2023 among 3,517 U.S. consumers 14 and older. More info on the report is available at this link. The report’s generational definitions are as follows: Generation Z (born 1997-2009), millennial (1983-1996),Generation X (1966-1982), boomers (1947-1965) and matures (1946 and prior).
