New PwC Report Finds Streaming Consumers Willing to Pay More for Content They Want
In the advent of the streaming wars, many media companies are going all out to make sure they gain the market share currently split between Netflix, Hulu and Amazon Prime. With Disney+ and Apple TV+ entering the market and WarnerMedia’s HBO Max and NBC’s Peacock not too far behind, consumers are being inundated with options. The streaming market is so saturated that a new report by PwC released today found that the question for consumers isn’t “How do I watch?” but “What do I keep and what do I cut?”
The study found that 76 percent of consumers today say were satisfied with their video subscriptions and 73 percent were satisfied with the quality of original content offered. Comparatively, two years ago, 60 percent of consumers said the video content space was more overwhelming than ever before. Despite the influx of options in the streaming space, consumers said they’re “‘happy,’ ‘fulfilled,’ and ‘excited,’ suggesting that most have curated an ideal combination of video content options for their needs.”
PwC also found that consumers were willing to spend more for the content they want. Half of the respondents showed interest in subscribing to at least one of the new services launching in the next six to 12 months. Most consumers were especially excited for Disney+, which not only had a huge promotional campaign prior to launch, but also has longstanding brand recognition.
The survey also revealed that while cord-cutting is still prevalent, it is starting to slow down. PwC stated that in 2019, people who had contentious experiences with cable cut the cord, but those who kept it recognized it fulfilled a need in their viewing lineup. Traditional pay-TV subscribers declined only one percent from 68 percent to 67 percent from 2018 to 2019, according to PwC.
PwC’s report stated that less people are watching TVs solely through their cable subscription. The survey found that 77 percent are accessing TV content on the internet, up from 72 percent in 2018. Pay-TV also made up a majority of streaming subscription growth. PwC discovered that on average, pay-TV users also subscribed to five additional video services in 2019, up from four in 2018.
In comparison, cord-cutters averaged 10 additional video services alongside their pay-TV subscription. However, because they are motivated by content, cord-cutters proved to be the most agile respondents. Forty percent admitted to actively looking to unsubscribe from at least one of their current services.