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By ERIK GRUENWEDEL
Source: www.mediaplaynews.com, May 2023
Consumers have too many sources of home entertainment, which along with cost, is putting a lid on the growth of the subscription streaming video-on-demand market, according to new data from Hub Entertainment Research.
While the escalating cost of SVOD services draws the bulk of media attention, the same number of survey respondents (82%) cite the sheer number of competing platforms, along with cost, limit adding additional services.
Hub’s survey was conducted in March and included 3,000 U.S. entertainment decision-makers with broadband, age 18-74.
Streaming video represents only about half of consumers’ total entertainment ecosystem, with games and social media taking a greater share of disposable time and money. The average household uses roughly the same number of paid video services (6.1) and non-video (6.7). But key demo segments, including young adults or households with kids, use significantly more non-video than video sources of entertainment.
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Only about half of entertainment sources (video, audio, gaming, social media, podcasts, reading, etc.) in the home are considered essential (“something my household can’t do without”), according to Hub. The average respondent said their household uses 12.7 different sources of home entertainment (the same as in 2022). Younger respondents use more (15.8 sources) and households with kids use the most (16.3 sources).
“This research underscores the threat churn represents to entertainment providers”, Jon Giegengack, principal analyst at Hub said in a statement.
Giegengack contends the data underscores the opportunity for companies to simplify the user experience. He says the volume of streaming services and complexity is as big an impediment as cost.
“For companies trying to maximize their bottom line, creating a simpler experience should be more palatable than cutting their price,” he said.
