Study: 70% of People Consider Video Spending a Priority; Content Leading Reason to Cut Cord
Despite various headwinds — including inflation and increasing competition — roughly 70% of participants in a recent TiVo survey view their video entertainment spending as a “moderate to high priority.”
According to the TiVo Video Trends Report for Q2 2022, titled “The More Things Change, the More They Stay the Same,” the total average monthly video bill for respondents has increased over the last six months, both for pay-TV subscriptions and broadband-only subscriptions. This is the case despite 25% of those surveyed cutting their bills during that time.
And while respondents to TiVo’s survey are spending more, many people are getting rid of specific services. The churn for subscription video-on-demand (SVOD) services is twice that of traditional pay TV, due to the relative ease to make changes to a streaming subscription vs. those from cable or satellite providers. And perhaps most surprising, of those in the survey who subscribe to pay TV, a full 25% are “pay TV revivers,” people who at one point cut the cord, only to sign up again down the road.
When respondents who still had a pay-TV subscription were asked why they were reluctant to cut the cord, the biggest reason was fear of “not getting all the entertainment I want.” And when they were asked what they would do if they did cut the cord, more than 62% of those surveyed answered that they would subscribe to a live TV streaming service which replicates the traditional TV experience.
The survey also asked for the reasons why people choose to subscribe to new SVOD services. The top answer all seemed to center around content; the most popular answers were that the platform had a “large library of good programming,” followed by “good original programming” and a “specific show or movie I wanted to watch.”
Whether it is cost or content, the traditional TV experience isn’t stacking up in the minds of consumers, driving many to cut the cord. However, few streaming services can truly provide the familiar experience that cable or satellite can. So as the entertainment pendulum continues to swing, it will be interesting to see what the next evolution of the streaming wars creates.
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