In an ironic twist, bundling — the channel-packaging strategy in cable television that many say fueled cord-cutting — is gaining ground in the streaming business, according to new data from the National Research Group (NRG).
NRG says that 51% of consumers say that subscription services make up a significant portion of their monthly expenditures. As inflation increases, people have been forced to make choices about their discretionary spending. That includes cutting back on streaming video subscriptions.
While 66% of survey respondents expect that they will have to make cutbacks to their regular spending due to inflation, only 28% plan to decrease their number of SVOD services over the next six months.
To save money, among consumers with at least one streaming subscription, 57% have opted for bundle deals, including Disney+, Hulu and ESPN+, T-Mobile with Netflix, Verizon and Disney+, and Hulu with HBO Max among the most popular packages.
Among standalone services, NRG found that $10.60 monthly is the maximum amount the average consumer would pay for a streaming service that included ads. Another 53% of respondents said they were willing to accept ads in return for a lower price, while 28% said they would pay more to avoid ads.
Other notable facts included that 24% of respondents admitted to password-sharing or using a streaming service they don’t subscribe to. Another 66% of consumers said it’s hard to keep track of all the streaming services that have launched in the last few years.
And 56% of respondents said they have taken out a subscription planning to cancel before the free trial ended — and 73% of them have been charged because they forgot to do so.