Consumers' Appetites for Old Media Services May Be on the Decline
Have consumers run out of patience, time, and money for traditional services? A new report from Visual Objects suggests that may be the case. The report, based on a survey conducted by Manifest, found that 76% of consumers pay for 1 to 3 pay for TV services and only 16% pay for more.
The survey found that 26% of consumers pay for only one streaming service, while 50% pay for 2 to 3. "It is essential for streaming companies to be in the top 3 most popular services," writes author Emily Clark. Once you figure in Netflix, Amazon Video, and Hulu, that doesn't leave much room for upstarts—something Quibi discovered quickly after its April launch.
The survey also found that 78% of people pay $50 or less per month on streaming services. 15% pay $10 or less, 39% pay between $11 and $25, and 24% pay $26 to $50. Only 11% pay between $51 and $75, and 9% pay more than $76 per month.
"Considering the price point, new streaming services are going to have a tough time competing with the three most popular platforms: Netflix, Hulu (owned by Disney), and Amazon Prime," Clark writes. She notes that Disney+ has gained 28.6 million subscribers since its launch in November 2019, while Apple TV+ has gotten more than 10 million customers to sign up to the service's 12-month free trial. That's only 10% of Apple's customer base.
Quibi spent $1.8 billion on launching its mobile-only "quick bites" video service, but has already lost almost two-thirds of the consumers who signed up for a free 90-day trial.