Consumer attitudes towards video entertainment consumption are shifting, a new survey from Futuresource Consulting reveals. The cost of living crisis is causing consumers to adopt a more cautious mindset when it comes to spending on video products and services.
These findings are taken from the Living With Digital survey conducted in July 2022. Conducted by market analysts from Futuresource Consulting, the survey covers the USA, UK, Germany, France, Italy, Spain, Canada, Australia, Japan, and Sweden.
The cost of living crisis is undeniably having an impact on consumer attitudes. With respondents in European markets more likely to be struggling financially, spending on video products and services in European nations is facing challenges. An atmosphere of frugality is sweeping the market, with those who have cancelled their SVoD services naming cost as the number one reason for doing so.
But research demonstrates that this economising is not a hard and fast rule. Germany, for example, is a significant exception to the trend. A degree of headroom for increased service uptake is clear, with around 30% of SVoD subscribers saying they’ll take on more subscriptions. This is in comparison to the ~10%-15% who will take less.
The frequency of release for new episodes was also a key area of research in the Living With Digital survey. Already a hotly debated topic among consumers, Futuresource Consulting asked respondents directly their preferences on staggered or total release ‘drops’ of TV shows they like.
Generally, respondents said they preferred episodes to be released all at once. But despite consumers’ taste for binge-watching shows, a staggered release is the clear winner for customer retention. Consumers voted that they’d be more likely to continue subscribing to a service that released episodes of new TV shows weekly.
The survey shows that consumers have mixed feelings towards SVoD services with ads. Some prefer to pay premium prices to forgo ads, whereas there was clear evidence of an acceptance for ads to either lower monthly spend or indeed watch for free.
There are regional preferences, with Italian and Spanish respondents more likely to defer to lower-priced services with adverts. Whereas respondents from the US, Sweden, and Australia were happy to pay more to cut adverts.
Netflix subscribers held differing opinions on switching to ad-supported plans. Most would prefer to continue to pay without ads. There were more subscribers in the USA and Italy who would consider switching to an ad-free version than stick with paying full price.
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