The average U.S. user estimates they are spending $82 a month on TV content, very close to what they say is the maximum they would be willing to pay ($87), as revealed by Hub's annual “Monetization of Video” study. "500 channels and nothing to watch" is the familiar refrain of customers frustrated with expensive cable packages. In today’s streaming world, with so many platforms and abundance of content from which to choose, and even with consumers feeling the bite of inflation, some features and content may drive additional spend from consumers.
More expensive ad-free services are stickier than cheaper (or free) ad-supported ones. Despite the plateau in overall spend, people paying extra for ad-free services consider them more valuable and are more loyal. Cheaper ad-supported and FAST services like Pluto and Tubi have helped to fill the gaps for people tapped out on spending, but loyalties to those services may not be as strong. In comparison, subscribers to ad-free services are significantly more likely to say they’ll still be using that service a year from now.
Respondents prioritized 16 features based on how much value each adds to a streaming or TV service. Features related to price were among the highest scoring, such as a lower price than other services with similar content added the most value, and a choice between ad-free or a less expensive ad-supported tier also scored highly.
However, most of the other top items had to do with content: access to recent theatrical movies, original shows, and access to all seasons and episodes of each show all make a platform more valuable. In aggregate, those content attributes matter more than just a low price.
“These results are encouraging for streamers under pressure to maximize profits,” said Jon Giegengack, Principal at Hub. “Consumers are feeling the pinch of inflation. But even so, key content like theatrical movies and exclusive originals are as important as cost – great news for platforms that need to raise prices, not lower them.”