Report: $12 the Ideal SVOD Monthly Fee, Well Below Netflix, HBO Max Prices

On the heels of Netflix raising the monthly price for its standard plan to $15.50, new data from researcher Morning Consult finds that the average U.S. streamer is comfortable paying only around $12 monthly for service. That’s about $3 less than the monthly fee for HBO Max, but above the fees charged by Disney+, among others.

Citing a Jan. 28-31 survey of 2,210 U.S. adults, the report found that respondents also considered the optimal price for ad-supported VOD services such as Hulu, Paramount+, Discovery+ and Peacock to be around $10.

Respondents’ acceptable price range for streaming services showed slight movement from a similar 2019 survey. The report found that the bottom of the price range for ad-free services increased by a dollar to $11-$16, while consumers’ preferred range for ad-supported services grew to $8-$14. Netflix’s new $15.50 standard plan is only 50 cents below what Americans said is the highest acceptable price for an ad-free streaming service.

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“Netflix and HBO Max are quickly approaching the top of consumers’ preferred price range, while others such as Disney+ and Apple TV+ still have room to go higher,” report author Sarah Shevenock wrote in a note. “Given that consumers haven’t fundamentally changed their minds in the last three years about how much a service should cost, additional increases could spur consumers to reconsider the number of subscriptions they can afford. It is a delicate game of which companies such as Netflix are well aware, but for now, they think the added revenue is worth the risk of losing some subscribers.”

Paramount+ to Cost Less Than CBS All Access

An ad-supported version of Paramount+ will launch in June at a monthly subscription rate of $4.99 — $1 cheaper than the existing CBS All Access plan with limited ads.

Tom Ryan, CEO of ViacomCBS Streaming

ViacomCBS is rebooting the CBS All Access subscription streaming service to Paramount+ on March 4 at $9.99 for the ad-free plan, which also features more exclusive content.

The pricing was disclosed Feb. 24 during ViacomCBS’s marathon special investor event by Pluto TV founder Tom Ryan, who is now CEO of VIacomCBS Streaming.

CBS All Access and Showtime OTT ended 2020 with 19.2 million combined U.S. subscribers — up from 11 million at the end of 2019.

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