As more players enter the North American streaming service market, so do the high costs, churn rates, and challenges from competitors. What's more, more and more streaming subscribers are asking themselves, "Is the subscription fee worth it?"
According to Deloitte's 18th annual Digital Media Trends report, U.S. households subscribing to streaming video entertainment spend an average of $61 per month on four services, up 27 percent from $48 last year. The report concludes that prices for such services may have peaked, with more than a third (36 percent) of respondents believing that the content they see is not worth the money, and nearly half (48 percent) saying they would opt out of even their favorite VOD service if their monthly subscription fee were to rise by another $5.
According to the Deloitte report, while streaming subscriber churn has declined, it remains high: 40% of consumers say they have unsubscribed from VOD services in the past six months, down from 44% last year. Sixty-seven percent of respondents want to be able to offer bundle-like services for cross-platform content search, 63 percent want to offer the flexibility to change platforms, and 47 percent say they spend more time on streaming platforms if content is easier to find. More than half of Gen Z (born between 1995 and 2009) and millennials (born between 1981 and 1996) say they get better movie recommendations from social media than from streaming services.
Jana Arbanas, Deloitte Vice Chairman and executive in charge of telecommunications, media and entertainment, concluded, "Streaming services have come to a critical juncture. Providing quality content is no longer enough to meet user needs, and providing a more personalized experience based on users' preferences and interests is the next priority. "Streaming platforms must recognize that social media is the primary way for people to 'grow grass' with content these days." In order for consumers to resonate with relevant content, streaming platforms should work hard to make content more relevant to various audiences, and cultivate a circle of preferences and social networking atmosphere. ”
Other relevant data from the Deloitte report includes: 42% of respondents say that both generative AI and humans can provide interesting content, 70% say they prefer to watch TV shows or movies written by humans, and 22% say that generative AI can create more interesting content than humans.
Among Gen Z and Millennial respondents, 49% learn about and watch TV shows and movies through what creators post online, 55% learn about the latest games from social media streamers and UPs, and 54% say social media ads have the biggest impact on them. 60% of Gen Z prefer to watch UGC (user-generated content) videos because they don't have to spend time looking for something to watch. Forty-two percent of respondents said that short-form videos on social media show "much more diversity" than TV and movies.
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