Consumers nearing top of streaming spending, Hub study finds

With the plethora of streaming platforms available, a new study by Hub Entertainment Research sheds light on what consumers value most in their video subscriptions. The annual “Monetization of Video” study found that while consumers are sensitive to costs, they prioritize access to theatrical movies and exclusive original content equally.

Respondents reported spending $82 a month on TV content, close to their stated maximum willingness to pay $87. Despite feeling maxed out, some consumers are willing to spend more for specific features and content.

The study indicates that more expensive ad-free services retain subscribers better than cheaper or free ad-supported ones. Consumers paying extra for ad-free services tend to find them more valuable and demonstrate higher loyalty. In contrast, loyalty to ad-supported services like Pluto and Tubi is weaker.

Respondents were asked to rank 16 features based on their value to a streaming or TV service.

Lower prices and the option between ad-free or cheaper ad-supported tiers were among the top features. However, most highly valued features were related to content, such as access to recent theatrical movies, original shows, and complete seasons.

“These results are encouraging for streamers under pressure to maximize profits,” said Jon Giegengack, principal at Hub Entertainment Research. “Consumers are feeling the pinch of inflation. But even so, key content like theatrical movies and exclusive originals are as important as cost – great news for platforms that need to raise prices, not lower them.”

The report is based on a survey of 1,600 U.S. TV consumers with broadband, aged 16-74, conducted in early June 2024. A free excerpt of the findings is available on Hub’s website. This study is part of the “Hub Reports” syndicated report series.

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