With the rise of inflation and overall cost of living, U.S. consumers are adjusting their discretionary spending, including subscription streaming services. But new data from Bitmovin, a San Francisco-based streaming infrastructure provider, finds that more than half (57%) of Americans have not canceled any streaming service despite the economic uncertainty.
Value for money (54%) and the availability of their favorite content (48%) are what will keep consumers subscribed to video streaming services. The research also found that almost one in four (25%) Americans valued the ability to use a streaming service across all devices as one of the top three reasons to keep a subscription.
The research suggests that in a paid subscription model, the majority (68%, rising to 78% in those aged 18-35) of consumers are happy to pay for an ad-free experience. Most viewers (58%) are happy to tolerate ads when it comes to free streaming services, however, it seems if paying for a subscription, no matter the cost, they would like ad-free content.
“Netflix’s [bow of a lower-cost ad-supported subscription tier] may agitate some users, however it is clear they are taking steps to help consumers through the cost-of-living crisis,” Stefan Lederer, founder/CEO of Bitmovin, said in a statement.
Americans are still spending six hours per week watching paid-for entertainment streaming services and just three hours on free entertainment platforms on average, according to the report. Mobile phones are the second-most-popular choice for viewing streamed content (49%), behind connected TVs (67%), laptops (25%) and tablets (23%).
“There’s still a huge demand for video streaming platforms,” Lederer said. “Streaming platforms that want to remain ahead of their competitors need to closely examine their service as a whole and ensure it delivers the best value for money — by providing the best online experience, cost-effective bundle options, and high-quality content. This is the new battleground for the streaming wars.”