According to Deloitte, customer acquisition has accelerated, particularly for paid streaming video, music, and gaming subscriptions. Before the pandemic, 27% of US consumers said they planned to add a new streaming video service in the coming year. Since the COVID-19 pandemic began, 23% have added at least one new paid streaming video service.
As people gain more time to watch, listen, and play amid the pandemic, they are adding new services to get new content. With this leap, 80% of US consumers now subscribe to at least one paid streaming video service, a 73% increase from prior to Covid. Nearly 70% of the boomer generation now have a paid streaming video subscription. The U.S. consumer had 12 paid media and entertainment subscriptions. Millennials averaged 17 subscriptions, Gen Z had 14, and Gen X had 13 and 27% of consumers, including 42% of Millennials, said they planned to subscribe to more services in the coming year.
Most U.S. consumers have an average of seven digital devices with screens, including smartphones, tablets, smart TVs, and laptops. Three providers face an increasing amount of competition for media and entertainment, though streaming video services rule the screen. Since the Covid-19 pandemic began, consumers who were surveyed surveyed have been adding and canceling subscriptions. For example, 20% of US consumers made changes to their streaming music subscriptions: 12% added at least one service, 5% canceled at least one, and 3% added some and canceled others.
Like with on-demand video, more consumers binge on-video games. 29% of consumers were binge gaming weekly, for an average of 3.3 hours per session. 52% of Gen Z and 46% of Millennials said they binge game weekly. However, as more media providers join the market, including Disney+, Apple TV+,6, and HBO Max competition is growing and putting pressure on content and pricing. Since the COVID-19 pandemic began, 9% of consumers have both added and canceled at least one new paid streaming video service, suggesting more churn as consumers seek value.
Additionally, when COVID-19 restrictions are lifted, consumers may reduce their subscriptions. The main reason why reason consumers added a streaming video service during the crisis was having more time to watch shows and movies. As consumers return to more normal routines, they may likely have less time for entertainment.
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