4 NOV 2022

US households now subscribe to more streaming services than ever

60% of streaming households in the United States now subscribe to four or more streaming services, up from 57% in June 2021, according to J.D. Power most recent survey.

4 NOV 2022

Share
  • Facebook
  • X
  • Linkedin
  • Whatsapp

Customers in the United States are subscribing to more streaming services than ever before. In fact, 60% of streaming households now subscribe to four or more streaming services, up from 57% in June 2021, according to J.D. Power’s fourth installment of its streaming pulse survey in July 2022, which consists of responses from 1287 US adults who shared their viewing preferences, usability challenges and plans for using these subscription-based services.

Despite this growth, subscription fatigue is gaining ground. More than three-fourths (82%) of streamers expect to maintain their current lineup and make no changes to their services during the next 30 days. Only 9% plan to add a new service.

Interestingly, an increase in the number of streaming subscriptions did not lead to higher overall reported costs. In fact, the average reported monthly household spend on all streaming services has remained relatively consistent at US$54 in July 2022 vs. US$55 in June 2021.

This consistency is likely due to the bundles and affordable add-ons offered by streaming services. For example, consumers can purchase the Disney bundle, which includes Hulu, Disney+ and ESPN+, for US$13.99 a month. The package saves US$11 a month compared with buying each service individually.

Customers can also save on subscription costs by taking advantage of numerous discounts and free trials. In addition to the deals offered by streaming providers themselves, wireless carriers, internet providers, big box retailers, and device manufacturers have all promoted lengthy free streaming trials to entice consumers. The cost plateau will be short-lived, however, as price hikes have recently been announced by multiple providers.

●  SATISFACTION WITH STREAMING SERVICES

Even as inflation problems persist and consumers spend less on non-essentials, media executives are confident that subscribers will see the value in their premium, original content. The costly, content-driven customer acquisition and retention strategy may create lifts in net subscriber counts, but satisfaction with streaming services declined in July 2022 from June 2021, most notably across content quality (-0.41) and subscription cost (-0.38).

Despite only declining slightly to 4.86 in July 2022 from 5.03 in June 2021, Overall Satisfaction is the lowest since this J.D. Power survey’s inception. Additionally, fewer respondents considered their streaming service to be “perfect” (10% in July 2022 vs. 15% in June 2021).

●  NETFLIX, SYNONYMOUS WITH STREAMING

According to J.D. Power, Netflix is the streaming provider respondents do not want to live without. Despite suffering at the hands of Wall Street and subscriber counts in the first half of 2022, Netflix is still a favorite among the public. When asked to choose only one streaming service, more than twice as many customers surveyed would choose Netflix (39%) than the next most popular selections, Prime Video (14%) and Hulu (14%).

Simply put, the streaming giant has become a staple in most households: over 90% of customers that have at least four streaming services will have Netflix.

●  COMPETITION ADVANCES ON NETFLIX

The record-breaking success of “Stranger Things 4,” which debuted May 27, helped Netflix maintain its market share, but competition is advancing. Despite a slight dip from June 2021 (and a loss of nearly 1 million subscribers in Q2 2022), Netflix remains the largest brand with 82% of respondents saying they subscribe, followed by Prime Video (67%), Hulu (60%) and Disney+ (55%).

The top three streaming providers all saw market share decrease from June 2021. Disney+ was the only streaming service among the top four to show gains and is quickly closing the gap.

●  HEAVY STREAMING SUBSIDES

Unsurprisingly, a return to normalcy during the past year has led to a decrease in heavy streaming. The heaviest time streaming is spent among the live TV streaming providers, with YouTube TV and Directv Stream capturing the most extensive streaming durations (12.4 weekly hours and 9.8 weekly hours, respectively).

Heavier streaming time has its disadvantages, however, as YouTube TV viewers struggle the most with problems while streaming. Prime Video, Disney+ and Hulu provide the most trouble-free viewership experience.

Overall, streaming problems are substantially decreasing: 80% of streamers indicate having no issues while streaming in July 2022. This is the lowest incidence of problems since fielding began.