Consumer Study: Strong Value of Streaming but Concerns About Economy

A recent study conducted by Hub Entertainment Research sheds light on how economic uncertainties are impacting U.S. consumers and their streaming habits. The survey reveals that post-pandemic economic challenges and rising prices are causing concern among viewers, leading them to closely monitor their spending, including their streaming video expenses.

Despite these financial worries, the survey also indicates that viewers still perceive streaming services to be a valuable investment. According to Mark Loughney, Senior Consultant at Hub, although consumers are feeling the lingering effects of the pandemic’s economic disruptions, they still recognize the high value that TV and video streaming offer, making them less likely to cut back on these subscriptions even during uncertain economic times.

While the majority of viewers are currently very concerned about the state of the economy, the study shows that TV subscriptions are not at the top of the list for potential cost-cutting measures. The research highlights that viewers are increasingly sensitive to the frequency of subscription rate increases, with many considering canceling subscriptions or switching to more affordable, ad-supported options.

Interestingly, when asked about reducing entertainment expenses in the coming year, streaming subscriptions ranked low on the list of potential cuts. One-time experiences like theme parks, concerts, and dining out were identified as more vulnerable to budget reductions than ongoing streaming services.

Moreover, the study reveals a shift in consumer attitudes towards advertising in TV content. Over the past four years, there has been a decline in the number of people who claim they cannot tolerate ads in their viewing experience. Only 11% of respondents in the latest survey identified themselves as ad-intolerant, down from 17% in previous years.

Among those who express a preference for ad-free content, there is a growing willingness to save money by opting for subscriptions with built-in advertisements, saving $4-5 per month in the process. This demonstrates that viewers are becoming more open to ad-supported streaming models as a cost-saving measure in an uncertain economic climate.