In a crowded over-the-top video space, where the average consumer is spending $142.20 monthly on Internet and video, transactional VOD spending is holding its own.
The average consumer is spending up to $26 each month buying or renting movies across myriad digital platforms such as Redbox and Vudu, according to new data from TiVo.
Accordingly, 55% of respondents cited as top subscription streaming “pain points” their belief that there are too many video services and “things keep disappearing from the services I subscribe to.”
Citing responses from 4,500 adult survey participants in North America in the second quarter (ended June 30), TiVo found that respondents spent $112.10 monthly on pay-TV and high-speed Internet, and another $32.70 on streaming services. Broadband-only subs spent $28.10.
Separately, Netflix, YouTube and Amazon Prime Video remain the most-used services. TiVo found that 45% of pay-TV subscribers also stream YouTube, Netflix and Prime Video, while just 7% of broadband-only subs do. The numbers would suggest that as new SVOD platforms Disney+, HBO Max, Peacock, Discovery+ and Apple TV+ expand distribution, consumer action follows.
But does it?
TiVo found that among pay-TV and broadband respondents with at least four streaming services, the additional player was the venerable SVOD platform Hulu, followed by upstart Disney+.
Just under 25% of pay-TV (and 18% of broadband) respondents indicated they’d cut or stopped subscribing to a paid streaming or live TV streaming service within the last six months; 19% noted canceling at least one video subscription due to their COVID-19 situation.
“While respondents cited a variety of reasons for canceling their streaming service, three of the top four reasons involved cost,” read the report. Indeed, nearly 70% admitted they’re not sure if they’re actually saving money on entertainment.
TiVo found that 55% of respondents are at their monthly spending limit, with 30% citing no fiscal room for an additional service, while 25% said they could only pay less than $10 per month for additional streaming services. More than 30% of respondents said that they could afford to pay more than $10 per month for additional streaming services.