AMSTELVEEN, Netherlands — The “streaming wars” are seeing new challengers in the form of legacy media companies such as Comcast entering the fray in recent months. With this development comes a new market survey which shows substantial evidence that consumers, previously believed to be very price-sensitive, are willing to spend much more to stream content that they enjoy.
A survey done by KPMG, involving over 2,000 streaming service consumers, found that the average monthly amount spent on streaming services was $22. Apart from this, the survey results showed that consumers were willing to pay $11 more for more content and related services.
However, the survey does accentuate that consumers’ primary concern is the price of access to a streaming platform, rather than the amount of content in its library.
This study was made in light of the recent developments in the streaming wars, born from the rising trend of consumers unsubscribing from costly cable services in favor of more focused online content streaming.
The opening stages of the “streaming wars” saw legacy media giants AT&T and the Walt Disney Co. alongside industry greenhorns such as Apple face off against the dominant names in the streaming industry such as Amazon and Netflix.
These price-based preferences could prove interesting for Comcast, which will launch an ad-supported version of its streaming service. Price was by far the most critical factor for 67% of people from ages 25 to 60 when choosing streaming services to subscribe to (as well as 52% of people aged 18 to 24).
Another factor that younger consumers had expressed a preference for the absence of ads from the service.
An average of 10% of all consumers considered this to be the most crucial factor when choosing a streaming service, as they did not consider the reduction of rates by the inclusion of ads worth the inconvenience.
Assuming that the competing services have put out equally competitive prices, analysts agree that content will be the deciding factor on whether or not a consumer will subscribe to a service.
This is the reason why many of the companies competing in the so-called “streaming wars” have invested so much in acquiring the rights to highly renowned TV shows, as well as increasing their budget for original productions.