Consumers believe their streaming services are too expensive, according to a new survey by Fandom.
In its “State of Streaming” report based on a survey of its members, Fandom found that consumers value the average video streaming service at $7.46 a month.
It follows that most of the top streaming services cost more than the value their customers attribute to them. They said they want to pay $10.60 for Netflix; $9.30 for HBO Max, $9.20 for Disney Plus, $8.60 for Hulu, $8.60 for Amazon Prime Video, $6.90 for Apple TV Plus, $6.80 for Paramount Plus and $5.50 for Peacock.
Cost is also important because consumers said that was the leading reason why they cancel subscriptions to streaming services. The high cost of streaming could be justified if in addition to programming, the services provided exclusive access to entertainment offering like behind-the-scenes content, merchandise and collectibles, 73% of those surveyed said.
The average Fandom user subscribes to five streaming services. In the survey, 78% said they would consider canceling a subscription they are not actively using. That puts an emphasis on user retention, Fandom said.
“A crowded and competitive market has driven the major streaming platforms to shift their focus from acquisition to retention," said Perkins Miller, CEO of Fandom. "Fandom is uniquely positioned to partner with streamers to help them understand key retention drivers and how to continuously re-engage their audiences.”
If they have content they’re interested in watching, 45% of consumers said they are willing to subscribe to multiple streaming services, but 70% said they are frustrated with how many subscriptions they need to watch their favorite entertainment.
Fandom’s 2022 State of Streaming report is based on a survey of 5,500 entertainment fans and an analysis of Fandom’s first-party data from 2021.
“Our proprietary data — Fan DNA — unlocks powerful insights into the fan mindset, enabling us to understand not only what fans are watching now, but what they want to watch next,” said Stephanie Fried, chief marketing officer of Fandom. “A deep and granular understanding of fan preferences and motivations allows us to share insights to inform our partners’ programming, messaging and targeting strategies, resulting in a more satisfied and loyal customer base.” ■
