Over the past few years, the streaming platform market has become highly competitive. In a landscape with numerous platforms and thousands of content options, industry giants are analyzing how to incorporate new consumers or attract users from other platforms. For a competitive market like UCAN (United States and Canada), the challenge is even greater. According to BB Media data, by Q4 2023, 86% of households consumed online content, while 9% never did, and 5% haven't in the past three months. So, what are the reasons for not watching online content?
Non-users are individuals who have not consumed movies, series, or events online for more than three months, or have never done so, regardless of the content or business model. BB Media analyzed the reasons for these individuals in UCAN. The primary reason, by a wide margin, is that they consider paid TV to be sufficient (48%). This reason is most prevalent among older age groups, particularly those aged 55 and over. However, personal preference for not watching online content also plays a significant role (23%), as do economic reasons, split between "I'd like to, but it seems too expensive" (18%) and "I'm in a financially difficult situation" (17%).
When analyzing users who do consume online content but have canceled certain subscriptions, BB Media identified that economic reasons are also significant. In fact, the main reason for users who canceled their Max subscription in the United States is that they find the platform expensive (51%). This issue is not unique to this service but also occurs with Disney+ (29%), Netflix (45%), and Prime Video (33%), among others. Other reasons for canceling subscriptions include switching to another platform, cutting costs due to financial situations, and a perceived decline in the quality of movies and series offered.
Regarding economic factors, major streaming platforms have started introducing ASVOD (Ad-Supported Video on Demand) plans. In the United States, multiple platforms have adopted the model of including commercials to offer a cheaper package, aiming to retain their users. This decision aligns with consumer preferences. According to BB Media, in the United States, 66% of users prefer a more affordable plan with ads, while 34% are willing to pay for a more expensive plan without ads.
On the other hand, since the primary reason for non-users is the sufficiency of paid TV consumption, the inclusion of live-streaming channels is becoming a popular strategy among platforms to attract this audience and maintain market share. Among the various platforms that have launched a range of linear channels, Plex, The Roku Channel, Samsung TV Plus, Amazon Freevee, FuboTV, and Pluto TV stand out for their extensive offerings. This practice has significant participation, as 63% of online consumers in the United States report watching live-streaming.
In conclusion, the streaming industry continues to evolve to adapt to the changing needs and preferences of consumers. Analyzing the reasons behind the lack of online content consumption is crucial to understanding the preferences and behaviors of potential users and designing effective market penetration strategies.