2023-09-10 22:03:15
20% to 40% of subscribers plan to cancel their streaming subscription in the next year.
Consulting firm Simon-Kucher’s latest study, “Global Streaming Study”, on consumer streaming behavior and preferences reveals that while subscribers perceive big players’ prices as consistent with the perceived value of their product, their current positioning leaves little or no room for direct price increases. Raising prices without increasing the perceived value of the product could be costly for streaming platforms, leading to termination risks in a competitive market.
The study reveals that consumers perceive only minor differences between offerings from dominant platforms such as Netflix and Amazon, and that their appetite for new offerings is growing.
According to the same study, 20% to 40% of subscribers plan to cancel their streaming subscription in the next year, even before taking into account price increases, and 40% would consider canceling their subscription if prices increased. by at least 20%.
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Moreover, the majority of subscribers expect platform prices to increase next year, particularly those of Netflix (64%). Among the major players, Apple TV+ stands out as the only streaming service dangerously close to falling out of the “consistency corridor” when it comes to measuring perceived value and price.
The fight against code sharing is bearing fruit: the example of Great Britain
According to the results of the NPA Conseil / Harris Interactive OTT Barometer, SVoD penetration has stalled, as in Great Britain, returning to 52.9% at the end of the second quarter of 2023, i.e. more than two points less than at the end of the first quarter. But two opposing trends are hidden under this overall figure, which aggregates – indeed – paying subscribers and those who use code sharing. The former are almost stable over three months, and up significantly over one year; the latter are down very significantly. Mainly at Netflix, which launched its campaign on May 23 aimed at combating code sharing. But also among other streamers, some of whom – at least Disney – have announced a similar turning point.
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