Consumers on average pay $22 a month for video streaming subscriptions and are willing to pay an additional $11 a month — or 50% more — for additional services, according to a new report from audit, tax and advisory services firm KPMG LLP.
“The fact that consumers are willing to pay 50% more, on average, provides a critical marker for providers as our study indicates a high degree of price sensitivity,” said Michelle Wroan, KPMG National Media Sector Leader, in a statement.
KPMG surveyed more than 2,000 subscribers, ages 18-24 and 25-60, to examine how people choose their video streaming services and the factors they deem most important.
Price topped the list of the most important features for both demographic groups in selecting a streaming service. Consumers aged 18-24 ranked ad-free service a close second, followed by content, while those 25-60 listed content a distant second, followed by ease of access.
Just under 70% of respondents ages 18-24 and nearly 80% of those 25-60 currently pay $10 to $40 per month for streaming subscriptions. Across age groups, when considering additional streaming services, most people would be willing to pay up to $20 more per month, while others would not be willing to increase their monthly spend at all.
“Assuming the price is right, content remains a key differentiator, and that’s why the major players have acquired content and lined up high-profile content production teams,” Wroan said in a statement.
About a third of the survey respondents said that a broad mix of content is a key consideration when choosing a video streaming service. After that, those 18-24 listed favorite older TV shows, while those 25-60 ranked the movie library and original series second. As far as where they watch content, more 18- to 24-year-olds (41%) use a smartphone most often to watch streaming content than any other device, and more 25- to 60-year-olds (61%) watch most on TV, smart TVs and devices such as Roku and Apple TV.