New survey shows entertainment spending drops below 2021 numbers
New survey shows entertainment spending drops below 2021 numbers
A new study from TiVo shows that viewers are being much more careful with their entertainment budgets.
TiVo and its parent company Xperi, are consistently keeping track of the latest trends in video usage. TiVo may not be the revolutionary video recording company that it once was, but its continued observance of the video marketplace has produced some valuable insights, such as those found in its latest survey.
Key Details:
- Cutting costs: Viewers are spending less on entertainment every month.
- Ads are OK: Viewers are more willing to put up with ads in order to continue getting access to top content.
- Sharing is caring: TiVo found that 34.6% of respondents have shared a streaming password at least once.
The overarching theme of TiVo’s Video Trends Report for the fourth quarter of 2024 is that audiences are trying to find ways to save, while still preserving access to the content they want most. That includes cutting streamers that don’t carry their must-watch titles; the average number of services used dipped from 11.1 to 9.9 among respondents to TiVo’s survey. Seventeen percent of viewers who canceled a streamer within the past six months said that they did so because they didn’t use that service enough, or because it had raised its prices.
Ad tolerance is growing as a result of consumers’ unwillingness to leave all streaming subscriptions behind. As measured by TiVo. 76.2% of streaming customers are tolerant of ads as of Q4 2024, as compared to 75.3% from the year-ago quarter. Customers also show a preference for greater personalization on streamers.
Spending on streaming services has fallen to its lowest level in years. The average monthly spend on entertainment dipped below $160, the first time since 2021 that it has fallen that low. Consumers decreased spending on entertainment by nearly $20 year-over-year in Q4.
Inability to access sports on a unified on-demand streamer could be hurting all services when it comes to sports fans. The number of pay-TV customers who report considering cutting the cord declined by 2% YoY in Q4, and 49% of TiVo respondents said they were frustrated by the inability to watch a specific game. Many of these viewers will likely keep their pay-TV subscription, since it gives greater access to more sports events at once.
Despite efforts by Max and other streamers, password sharing hasn’t been curtailed in the streaming world. TiVo found that 34.6% of respondents shared a subscription video streaming password for at least one service, another way that viewers are trying to keep costs down.
Another insight from the TiVo report shows that audiences vastly prefer Netflix’s binge release model for TV series. Around half of respondents said they’d rather a title release all episodes at once, as opposed to 19% who said they prefer when streamers release episodes more periodically.
Xperi executive Geir Skaaden said:
“We are seeing a shift in consumer priorities as they look for ways to reduce the number of services they use without sacrificing access to quality content. As consumers face economic uncertainty there will be increased pressure on the entertainment industry to deliver quality content and keep users engaged for long periods of time. There is a chance we will see a similar spend and entertainment consumption trend from that in which we experienced during the pandemic, with consumers searching for cost saving measures and spending more time at home, increasing the value in which consumers place on entertainment. This new balancing act is, and will continue to put more pressure on the entertainment ecosystem to deliver value with relevant and timely content.”
HBO Max
HBO Max is a subscription video streaming service that gives access to the full HBO library and exclusive Max Originals. There are hubs for content from TLC, HGTV, Food Network, Discovery, TCM, Cartoon Network, Travel Channel, ID, and more. Watch hit series like “The Last of Us,” “House of the Dragon,” “Succession,” “Curb Your Enthusiasm,” and more. Within HBO Max, B/R Sports allows users to watch live NBA, MLB, NHL, March Madness, and NASCAR events.