June 4, 2020
British rock band Dire Straits famous 1985 song “Money for Nothing” mocks pretty boys getting “their chicks for free.” New data from tech company The Trade Desk suggests British consumers love subscription video-on-demand — they just don’t want to pay for it.
In a recent survey, 70% of respondents said they wouldn’t spend more than £20 monthly ($25) on streaming services, a decline of £5 ($6.26) compared with a separate survey in September 2019. The research company contends the change in consumer attitude could result in a revenue loss of approaching £100 million ($125 million).
“While people want access to a variety of premium content, there’s a limit on how much they’re willing to pay. And with purse strings tightening, it’s time to think about how ad-funded models could benefit consumers, as well as supporting multiple streaming services,” Dave Castell, GM of inventory and partnerships at The Trade Desk, said in a statement.
As a result, Castell believes the limit on SVOD subsciption spending is a boon to ad-supported VOD, including services such as ViacomCBS’s Pluto TV.
“This data reveals a clear willingness among U.K. consumers to accept advertising if it means accessing their favorite shows for cheaper prices, or for free, but it’s vital that it’s done right,” the analyst said. “Ads must be creative, relevant and appropriately timed to keep consumers content. In doing so, streaming platforms can generate the revenue they need to keep creating the engaging, entertaining TV that Brits clearly crave, without charging the bill back to them.”