Almost three-quarters of global video customers plan to stop paying for pay-TV services within five years, according to a study from Grabyo, titled “Value of Video Report 2020: The Consumer Strikes Back”.
Almost three-quarters of global video customers (74%) plan to stop paying for pay-TV services within five years, according to a study from Grabyo, titled “Value of Video Report 2020: The Consumer Strikes Back”. The investigation used data from 13,000 consumers across 11 territories including the UK, France, Germany, Italy, Spain, US, Brazil, Argentina, Thailand, Japan, and Australia. The report asked consumers about their spending habits on TV and video services, how they value subscriptions, and future plans to pay for video.
As the streaming wars begin to take shape in 2020, the global penetration of online streaming has reached 55% of consumers, surpassing pay-TV adoption at 50%. Of the global consumers who plan to stop paying for pay-TV, or have already cut the cord, 26% reported the number one reason was the price of services. In contrast, streaming presents itself as a more affordable and attractive option.
The report also found that 66% of UK consumers spend up to £20 per month on video services. Some 30% of customers from this territory report that all their video spend is for online streaming services. The growing popularity of streaming is highlighted in the subscription to multiple services, with 35% of US customers subscribing to two or more online video services. This compares with 28% of consumers in the UK and 32% across Europe with multiple online streaming subscriptions.
Furthermore, the study highlights the number of consumers willing to pay for online streaming services. In the UK, 40% of consumers state they are willing to pay up to £35 per month for online video services. The number rises to 47% in the United States. “2020 will be the year we see the true impact of the streaming wars on viewing habits and what this means for the wider video industry. Broadcasters, rights holders and publishers need to cater to an audience that is moving away from traditional TV. Flexibility, access, and price are important to consumers, which means delivering a multi-platform video strategy that reflects these needs. The transition to cloud services will support this shift, but these changes need to accelerate. Our latest report shows streaming is no longer just for younger demographics, as the viewing preferences of all consumers are beginning to align,” Gareth Capon, CEO of Grabyo, commented.
2020 will be the year we see the true impact of the streaming wars on viewing habits and what this means for the wider video industry” Gareth Capon CEO of Grabyo