Is complexity as big of an impediment as cost when it comes to new subscriptions?

Consumers have more sources of entertainment than they can easily use and are eager for solutions that allow them to simplify, according to the latest wave of Hub Entertainment Research’s “Battle Royale” study.

The report assures that complexity is as big of a limitation to new subscriptions as cost. In fact, 82% of all respondents say budget is a main factor limiting their subscriptions, but just as many say there is a limit to how many platforms they can use, even if they could afford to have them all.

According to Hub, formats like gaming and social media are taking a greater share of disposable time and money. In fact, the average household uses roughly the same number of premium video sources (6.1) and non-video (6.7). Key segments like young people or households with kids use significantly more non-video than video sources of entertainment.

Across categories – video, audio, gaming, social media, podcasts, reading, etc. – the average respondent said their household uses 12.7 different sources (the same as in 2022). Younger consumers use more (15.8) and households with kids use the most (16.3). However, regardless of the segment, consumers only consider about half their sources to be “must haves.” All the others are classified as “nice to have” – something they might miss if it were gone, but not essential. The 50-50 ratio of “must haves” versus “nice to haves” is consistent across segments.

“This research underscores the threat churn represents to entertainment providers. Consumers are using many sources, but only half of them are considered essential: the others are at risk of being cut. But the data also show the opportunity for companies that can simplify the user experience. Complexity is as big an impediment as cost – and for companies trying to maximize their bottom line, creating a simpler experience should be more palatable than cutting their price,”  said Jon Giegengack, Principal at Hub and one of the study authors.

These findings are from Hub’s 2023 “Battle Royale - Wave 3” report, based on a survey conducted among 3,000 entertainment decision-makers with broadband in the United States, age 18-74. Interviews were conducted in March 2023 and explored consumer attitudes towards bundling subscription services.