New Research Predicts Subscription-Video Service Consumer Spending to Reach $24 Billion in 2020
With the streaming wars at their peak, it is no secret that media companies want your money. Though the newer players — Disney+ and Apple TV+ — have some sort of bundle deal, giveaway or trial, they’re playing the long game, hoping that customers will choose to stay after a free trial end. According to a new report by the Consumer Technology Association, that’s very likely to happen as they predict spending on subscription-video services will increase 29 percent this year, hitting an estimated $24.1 billion.
The projected increase is to be expected as Disney+ and Apple TV+ join Netflix, Hulu and Amazon Prime Video in the streaming space, with WarnerMedia’s HBO Max, NBCUniversal’s Peacock and Quibi also coming this year.
The CTA’s findings are consistent with those from a study conducted by PwC in December. In their survey, PwC found that consumers were willing to spend more for the content they want. Half of their 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 study also 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.”