Report: 47% Plan to Give a Streaming Subscription as a Gift in 2022, Making Stickiness More Important Than Ever

Are you planning to give a loved one a year of Netflix or the Disney Bundle this holiday season? If so, you’re definitely not alone. New data from the Consumer Technology Association, as reported by Media Play News, suggests that 47% of U.S. consumers plan to make a gift of a streaming service this holiday season.

All in all, 192 million Americans plan to give a tech-related present this season, and streaming services will be one of the most popular gifts. The number of respondents saying that they would give a streaming service as a gift during the holidays was second only to the number that said they would be giving a set of wireless headphones/earbuds.

The news is good for media companies trying to determine their next step. After all, a Paramount executive would rather see a new user sign up for Paramount+ for a year at $99.99 than simply sell a Blu-Ray of “Top Gun: Maverick” for a one-time gain of $30.

But the question for media companies is how can they make sure they retain a subscriber once the gifted period of time runs out, and they’re forced to either pay for the service themselves or cancel? There are a number of ways to keep subscribers happy and in the fold, and different companies are using different strategies to try and appear “sticky” to consumers.

One of the best ways to keep customers around is by becoming their default service. A survey from September found that users are eight times as likely to keep a service they identify as their go-to platform. But how can services best ensure that they’re the place users think of first when they want to watch TV?

Having a content library full of original titles is a good place to start. Another survey from May suggested that 36% of users said they would cancel a service that lacked new content. That means that content providers must keep their offerings fresh, and continue to produce new series instead of relying on past classics to keep users engaged.

Additionally, they need to make it easy for viewers — especially those exploring a service for the first time thanks to a gift card — are able to find the myriad content at their disposal. The number of entertaining shows and movies doesn’t much matter to consumers if they can’t find them or don’t even know that they are there in the first place.

Cost is another factor that streaming platforms must keep in mind when trying to retain new users. Over 90% of respondents to an October survey said that cost was an important factor in determining whether or not to keep a service. That means that providers that can offer more services at a reduced rate, like Disney does with its Disney Bundle, have a leg up on the competition. It also provides a warning for services like Paramount+, which start at lower price points but may be considering raising their subscription costs. Even if the newly higher price is still less than from competing services,

With the holidays fast approaching, streaming services are a quick and easy idea to give friends and family a gift they’ll actually use. But if media companies want people to keep using those services, they’ll have to ensure their platforms are as sticky as possible.