Professional services firm Deloitte’s 17th annual Digital Media Trends report has been released. It reveals that, on average, U.S. consumers are spending a total of $48 per month for subscription video-on-demand (SVOD) services like Netflix, Hulu, Amazon and the like.
In addition, around half of those surveyed agreed that they ‘pay too much’ for SVOD services and around one-third say they intend to reduce their number of SVOD subscriptions.
This marks the first time the survey asked respondents to put a dollar figure on their SVOD spending and the results come as what’s dubbed ‘subscription fatigue’ is growing – making things challenging for SVOD services to retain customers as subscription rates slow and churn increases.
The number of SVOD services per U.S. household has remained steady at around four for several years. That may change now as the cost-of-living increases meaning consumers are looking to cut back on discretionary spending such as SVOD services.
Almost half (47%) of those surveyed have already changed up their entertainment subscriptions (e.g. cancelled, downgraded) because of the current financial situation, with 44% having cancelled at least one service in the past six months (up from 37% the prior year).
Whilst original shows and films are great at pulling in new customers, they do not retain them no matter their release strategy (i.e. binge vs. weekly). It’s said SVOD services need to invest in diversifying the content on their platforms to fix that.
Source: Variety
