After surveying over 2,000 subscribers, between the ages 18-24 and 25-60, KPMG found that both demographic groups cited price as the number one factor when it comes to selecting a streaming service. The survey found that about 70 percent of respondents ages 18-24 and nearly 80 percent of those 25-60 currently pay $10-$40 per month for streaming subscriptions. In both age groups, a majority of the people were willing to pay up to $20 more per month while others wouldn’t be willing to raise their their monthly spend at all.
“The fact that consumers are willing to pay 50% more, on average, provides a critical marker for providers as our study indicates a high degree of price sensitivity,” Michelle Wroan, KPMG national media sector leader, stated.
When it came to choosing or dropping current subscriptions for the newer offerings, the survey found that the decision came down to price. About 35 percent of 18-24-year-olds would ditch their current subscription for a new one, seven percentage points more than those in the 25-60-year-old demographic.
The survey also found that 32 percent of the 18-24-year-olds would consider adding a new service to their existing subscriptions regardless of price, while 22 percent would add based on price. For 25-60-year-olds, 28 percent of respondents would consider adding a new service to their existing subscriptions regardless of price and 33 would base the decision on price. The numbers for people who wouldn’t consider a new service were close in both demographics, with 11 percent in the 18-24 group and 10 percent in the 25-60 group.
For the 18-24 demographic, KPMG found that the second factor when it came to selecting a streaming service was making sure there were no ads and then content came in third. For the 25-60-year-olds however, content was second while ease of access of access came in third.