How is the cost-of-living crisis impacting streaming services in the UK?

Over half (57%) of consumers in the UK have not cancelled any streaming service despite the cost-of-living crisis, streaming infrastructure provider Bitmovin has unveiled in its latest research. According to the report, value for money (57%) and the availability of their favorite content (48%) are what will keep consumers subscribed to video streaming services amidst the cost-of-living crisis. The research also found that almost one in five (19%) consumers valued the ability to use a streaming service across all devices as one of the top three reasons to keep a subscription.

Bitmovin’s research suggests that, in a paid subscription model, the majority (58%, rising to 67% in those aged 18-35) are happy to pay that little bit extra for an ad-free experience. Most viewers (60%) are happy to tolerate ads when it comes to free streaming services, however, it seems if paying for a subscription, no matter the cost, they would like ad-free content.

“Netflix’s announcement may agitate some users. However, it is clear they are taking steps to help consumers through the cost-of-living crisis. The cheaper, ad-supported membership, may open the platform up to a net-new audience, but at the same time, our research indicates loyal viewers are happy to pay that little bit extra. For Netflix, it is the best of both worlds,”  said Stefan Lederer, CEO and Founder of Bitmovin. “What stands out from the research is that amid global economic challenges, consumers are looking for value for money in all aspects of their lives, and video streaming services are not exempt. High-quality viewing experiences and the ability to stream seamlessly are consumer requirements now,”  he added.

Furthremore, consumers in the UK are spending six hours per week watching paid-for entertainment streaming services and just three hours on free entertainment platforms on average. Mobile phones are the second most popular choice for viewing streamed content (44%), behind Connected TVs (68%), and much higher than tablets (21%) and laptops (18%).

“There is still a huge demand for video streaming platforms. Streaming platforms that want to remain ahead of their competitors need to closely examine their service as a whole and ensure it delivers the best value for money – by providing the best online experience, cost-effective bundle options, and high-quality content. This is the new battleground for the streaming wars,”  Lederer concluded.