Consumers loyal to streaming, but at what price?

KPMG conducted a survey of consumers to better understand the impact of current economic conditions on their entertainment choices, and to gather their opinions about streaming pricing trends, content options, and the impact of the Hollywood strikes on the availability of new movies and series.

After years of strong consumer demand and numerous streaming launches, the market has become saturated. With the pressure to increase revenue, streamers have shifted their focus to a different set of KPIs, including ARPU, churn, and profitability. In the face of streaming price hikes and tightening budgets, subscribers are feeling the squeeze as they continue to juggle multiple subscriptions. Many are taking a second look at streaming spend and paring back or considering lower priced options.

Highlights

• Due to budget tightening, 37 percent of respondents have canceled at least one streaming service in the last six months, while another 27 percent said they planned to cancel in the next six months.
• 81 percent of respondents would be willing to accept long-term streaming contracts for a lower price
• 30 percent of respondents said they already pay for an ad-based subscription, while 23 percent would consider switching in the next six months.