As CDG clients continue to refine their video strategy, new research on video streaming offers some good insight. Consumers are being offered an increasing amount of streaming choices with the recent launches of Disney+ and AppleTV+ and the upcoming launches of HBOMax and Peacock.
But, according to new video streaming market research from The Trade Desk, a provider of cloud-based advertising technology, there is only so much people are willing to pay.
According to The Trade Desk survey, most Americans (59%) are not willing to pay more than $20 a month for streaming TV services. Additionally, three quarters of consumers will not pay more than $30 a month.
Video Streaming Market Research
Among other survey findings:
- More than half of U.S. households (53%) subscribe to Netflix, followed by Amazon Prime (43%) and Hulu (29%).
- More than half (53%) of U.S. consumers would be open to watching ads (every other episode of their favorite show) if it meant lowering the cost of subscription streaming services.
- The leading cause of frustration with TV advertising among streaming subscribers is having to watch the same commercial repeatedly (cited by 46%).
- More than two-thirds (68%) of U.S. consumers (with no preference to tailored TV ads) would be willing to watch ads relevant to their interests if it meant watching fewer ads overall.
- More than half (51%) of respondents who watch new episodes of their streaming TV show on an app, after it premieres, watch on a smart TV.
The above findings indicate that content providers are under pressure to produce new premium content that drives membership and viewership, but also must decide whether and how to incorporate advertising-supported tiers to their platform.
“With consumers experiencing subscription fatigue and unwilling to subscribe to more than one or two premium services, broadcasters have to figure out how to continue to fund this new golden age of TV,” said Brian Stempeck, chief strategy officer of The Trade Desk, in a prepared statement. “At the same time, consumers are willing to view ads if it means their subscription costs go down, even more so if those ads are relevant to their interests and are just not the same ads over and over again. This indicates that ads will fund the future of streaming TV, and that broadcasters and advertisers have an opportunity to improve the advertising experience in a way that simply is not possible with traditional, linear TV.”